Gasoline Drops Below $2 in State

The average price of gasoline in California fell below $2 a gallon for the first time in nearly 11 months, the government said Monday, as oil futures dropped sharply.

The statewide average price of self-serve regular slipped 2.8 cents to $1.982 a gallon in the week ended Monday, according to a weekly survey by the Energy Department.

It was the 11th straight week that gas prices declined, bringing the average to its lowest level since it stood at $1.868 a gallon in the week ended Feb. 16, the department’s Energy Information Administration said.

California’s average price has skidded 42 cents a gallon, or 17.5%, since it reached a record high $2.402 a gallon in the week ended Oct. 18.

Nationwide, the average price fell 1.3 cents to $1.778 a gallon in the latest week.

Despite its steady decline, the average pump price in California remains 36.5 cents higher than a year ago, in good part because crude oil prices also are well above year-ago levels. The U.S. average price of gasoline is 26.8 cents higher than a year ago.

Oil also has tumbled from a record high reached in October, of $55.17 a barrel, which has helped push gasoline prices lower. And oil ended its first trading day of the year with another sharp decline, spurred by mild weather in the Northeast.

Near-term crude futures fell $1.33 to $42.12 a barrel on the New York Mercantile Exchange.

Refined products also fell on the Nymex. Gasoline futures slipped less than a penny to $1.132 a gallon, and heating oil futures plummeted 6.04 cents to $1.192 a gallon.