Gas Prices Drop, but Drivers May Not Notice

U.S. and California retail gasoline prices fell for the third week in a row, a federal report said Monday, but the small savings, which reflect increasing supply and declining oil prices, were barely noticeable at the pump.

California’s average price for a gallon of self-serve regular gasoline fell by half a cent from the previous week to $2.56, the Energy Information Administration said.

The national price for regular declined by one-tenth of a cent to $2.235 a gallon, according to a weekly survey of service stations by the EIA, the Energy Department’s statistics arm.

Compared with this time last year, California’s average price is up 44.5 cents a gallon and the U.S. average is up 39.1 cents. On April 11, California’s average hit a record $2.592 a gallon and the U.S. average reached a record $2.28.

Gasoline prices have dropped lately because of the sharp decline in crude oil costs. However, analysts warn that pump prices could rise before the Memorial Day holiday, the traditional start of the summer vacation season.

After a 10% price plunge last week, crude oil for June delivery rose $1.20, or 2.4%, to close at $50.92 a barrel. In early trading, oil futures touched $49.03, the lowest since Feb. 22. Prices are up 36% from a year ago. There was no obvious catalyst for Monday’s price increase, which analysts attributed to speculative buying and concern about strong demand.