Orange County motorists have experienced a continued decrease in gasoline prices, with the average price of a gallon of self-serve regular gasoline dropping 2 cents on Tuesday to $6.354. This marks the fifth consecutive day of declines, following a significant period of 42 increases over 44 days that had pushed prices close to record highs.
Despite the recent drops, current prices remain elevated compared to past periods. The Orange County average price is 4.6 cents less than one week ago, but still 48 cents more than one month ago and $1.656 more than one year ago. The recent streak of increases had brought the average price within 5.3 cents of its all-time record of $6.458, set on October 5, 2022. Prices in Orange County have notably increased $1.718 since the start of the joint U.S./Israel war on Iran on February 28.
Neighboring Los Angeles County also saw similar trends, with its average price dropping 1.1 cents on Tuesday to $6.407, marking its fifth consecutive decrease. This followed a 44-day streak of increases that brought prices within 5.4 cents of its own record, which was $6.493 set on October 5, 2022. For Los Angeles County, the average price is 1.5 cents less than one week ago, but 51 cents more than one month ago and $1.68 more than one year ago. Like Orange County, prices in Los Angeles have increased $1.713 since the start of the joint U.S./Israel war on Iran on February 28, which sent oil prices higher and drastically accelerated increases at the gas pump.
The recent downward trend in prices for both counties, according to figures from the AAA and Oil Price Information Service, is attributed to an announcement made last week by Governor Gavin Newsom. The governor stated that cheaper winter-blend gasoline would be allowed for immediate sale, rather than waiting for the customary November 1 date.
Nationally, the trend diverged slightly. A 10-day streak of decreases to the national average price ended with an increase of three-tenths of a cent, bringing it to $4.368. This national average is 8.7 cents less than one week ago, but 22.1 cents more than one month ago and $1.235 more than one year ago. The national average price has increased $1.386 since the attack on Iran.
Patrick De Haan, head of petroleum analysis at GasBuddy, commented on the broader situation. In a statement released Monday, he noted that “a broad-based retreat brought relief to motorists across much of the country,” with average gasoline prices falling in 48 states over the last week and diesel declining in 48 states as well. De Haan suggested that declines might continue in most states, though some markets could experience upward swings. He further explained that while oil shipments through the Strait of Hormuz are increasing, refineries behind the strait are not yet fully able to move products through, which is contributing to gasoline and diesel prices remaining elevated relative to crude oil levels.
