Gas Prices Could Fall Through June

The average price of a gallon of self-serve regular gasoline in Los Angeles County fell 1.3 cents to $4.206 on Wednesday, City News Service reported. This is the 12th consecutive decrease after gas prices rose 43 times in 45 days.

The average price is 6.5 cents less than last week and nearly a cent less than it was last month, according to the AAA and Oil Price Information Service. The price is still $1.096 more than it was last year at this time.

There are still stations in the Redondo Beach area that sell gas for prices below the county average. Prices are from GasBuddy.com.

• Arco, 3900 Sepulveda Blvd., Torrance
  Regular: $4.029
  Premium: $4.159
• Thrifty, 4925 Torrance Blvd., Torrance
  Regular: $4.039

  Premium: $4.239
• 76, 5404 W. 190th St., Torrance
  Regular: $4.079 (cash price)
  Premium: $4.279 (cash price)
• 
  Regular: $4.099

  Premium: $4.299
• Thrifty, 16515 Hawthorne Blvd., Lawndale
  Regular: $4.129

  Premium: $4.329
• Arco, 1131 Pacific Coast Highway, Hermosa Beach
  Regular: $4.159

  Premium: $4.359
• Arco, 16518 Hawthorne Blvd., Lawndale
  Regular: $4.159
  Premium: $4.359
• 
  Regular: $4.179
  Premium: $4.379

The 12-day fall in prices comes a week after crude oil prices dropped. The month of April saw record profits for oil companies, and a political backlash over the price of gas. The Senate called representatives from the five biggest oil companies to Washington, D.C. for hearings about whether $2 billion in tax breaks for the oil companies should be eliminated.

"Crude oil prices took a big tumble last week, and California wholesale gasoline prices are now reportedly around $3.10 a gallon," said Auto Club spokesperson Jeffrey Spring. "The typical markup from wholesale prices is 60 to 70 cents, including taxes, fees, other costs and profits, so there's lots of room for prices to drop substantially. However, it's rare for gas prices to drop as quickly as they rise."
As the backlash steers speculators away from oil, some analysts predict that gas prices will continue to drop to an average of $3.75 per gallon by Memorial day and $3.50 per gallon by mid-summer.

Nevertheless, the trend of decreasing crude oil prices was threatened Wednesday in early-afternoon trading on the New York Mercantile Exchange; analysts said inflation and a surprise drop in crude oil inventory due to Canadian pipeline repairs caused the drop.

Western States Petroleum Association representative Tupper Hull said crude oil costs can account for up to three-quarters of the cost of a gallon of gas.