Gas prices in Santa Barbara might continue to drop another 30 cents during the next three to four weeks, according to the Oil Price Information Service.
Santa Barbara motorists have seen prices dip nearly 40 cents in the past month and could continue to do so based on last year’s trends, OPIS executive editor Denton Cinquegrana said. GasBuddy.com reported around a 45-cent drop from June to mid-July last year.
“I see similarities between this year and last year in terms of price activity, and I wouldn’t be surprised to see prices move another 20 to 30 cents downward over the next three or four weeks,” Cinquegrana said.
According to GasBuddy.com. prices hit $4.012 Friday for a gallon of unleaded gas in Santa Barbara, which is 14 cents cheaper than a week ago. The price is 38.4 cents lower than a month ago and 6.9 cents higher year-to-date. The California average is at $3.851 and $3.477 nationally. A barrel of crude oil was going for $78.080 on Friday.
But these aren’t exactly bargain prices, especially since California is just getting to last year’s average, said Marie Montgomery, spokeswoman for the Automobile Club of Southern California.
Avery Ash of the Auto Club said in her weekly report that low crude oil prices, less geopolitical tension with Iran and local economic concerns have contributed to the price drop.
“A weaker global economy would be expected to consume less crude oil, which puts downward pressure on prices,” she said. “Because oil futures are traded in U.S. dollars, as the dollar strengthens against foreign currencies, these futures become relatively more expensive to purchase and are a less attractive investment.”
Montgomery said this is the most significant dip in prices since July 2008.
“The reason the prices are driving down is because of demand destruction,” she said. “For most of this year, we’ve been paying well over $4 a gallon and that took a chunk out of people’s wallets. It’s partly in reaction to a lack of international events and increased domestic production as well.”
Santa Barbara motorists can find the cheapest gallon of unleaded gas at the 76 at 4401 Calle Real and the Chevron at 4290 Via Real in Carpinteria at $3.73. USA Gasoline at 340 W. Carrillo St. and ARCO at 1935 State St. have gas priced at $3.85. The ARCO at 3618 State St. is the next cheapest at $3.87.
USA Gasoline at 8 S. Milpas St. has the cheapest diesel fuel at $3.79.
The most expensive stations are the Chevron at 6895 Hollister Ave. and the Mobil at 49 Glen Annie Road at $4.49.
Cinquegrana said that typically, California drivers can expect prices to dip through July, increase in September and drop again in November.
“Based on what I’ve seen in various markets, I’d expect more price drops very soon,” he said.
— Noozhawk staff writer Alex Kacik can be reached at akacik@noozhawk.com. Follow Noozhawk on Twitter: @NoozhawkBiz, @noozhawk and @NoozhawkNews. Connect with Noozhawk on Facebook.