San Diego Gas Prices Drop For 27th Day In A Row

SAN DIEGO -- The average price of a gallon of self-serve unleaded gasoline in San Diego County fell 1.6 cents Sunday to $3.426, the 27th consecutive daily decline.

Sunday's average price is 34.5 cents lower than last month and $1.204 less than the record high of $4.63 set on June 19, but 38.2 cents more than at this time last year, the Oil Price Information Service reported.

The average price has dropped 36.8 cents over the past 27 days, including 2.7 cents from Friday to Saturday and 3 cents from Thursday to Friday. The average price has decreased 91 of the past 96 days.

The dropping price is a result of lower demand, a steady decline in crude oil prices, stemming in part from the worldwide economic downturn, and reduced speculation by futures traders, Automobile Club of Southern California spokesman Jeffrey Spring told City News Service.

Crude oil costs account for two-thirds to three-quarters of the price of a gallon of gasoline, according to Tupper Hull, director of strategic communications for the Western States Petroleum Association, a trade association representing major oil companies in six Western states.

The price of a barrel of light sweet crude for November delivery dropped $8.89 to $77.70 on the New York Mercantile Exchange Friday, the lowest settlement price since Sept. 10, 2007. Since hitting a record high of $147.27 on July 11, the price of crude has fallen 47 percent.