On Friday, UCAN's gas project, which is more sensitive than other gas monitoring services, showed a slight uptick in gas prices of one-tenth of a cent, reversing six months of steady price declines from San Diego's all-time high of $4.64 a gallon in mid-June.
For three weeks now, UCAN has been saying that gas prices were near a bottom, and that the bottom was about to get spanked.
While small, the increase was statistically significant. Prices have increased slightly to a new average since then of $1.731 a gallon. Diesel prices fell slightly, as we predicted, to a new average of $2.27 a gallon.
OUR PREDICTION - Prices for regular unleaded will remain below $2 a gallon throughout Christmas, but we could see price spikes of a just a few pennies to as much as 7 cents on average as early as Saturday.
Adding fuel to the fire is the fact two major refineries are rumoredhaving problems - British Petroleum/Arco in Carson, and a rumored problem at one of Valero's refineries. Together, these two refineries supply at minimum, 17.5% of California's gasoline, making shortages and price hikes almost impossible top avoid.
Our advice ... fill up now. Prices probably won't go above $2 by Christmas, but they are going to be headed in that direction quickly.
For more information or media inquiries, contact Charles Langley, Manager of UCAN's gas project, or UCAN's Executive Director, Michael Shames.
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Diesel prices fell slightly, as we predicted, to a new average of $2.27 a gallon.
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