Modesto-area gas prices dip below $3 per gallon

Heather Johnson spends a lot of time and money at gasoline stations. Johnson, a student, was thrilled to pay $2.99 a gallon at an Arco station in Turlock on Tuesday morning.

“It’s great,” she said of the dropping gas prices. On a budget that counts every dollar, Johnson said it was a happy surprise to get three gallons for $10.

Gas prices are dropping – a lot. A quick scan of modestogasprices.com Wednesday morning showed several stations in the Northern San Joaquin Valley offering regular unleaded for less than $3 per gallon, with the lowest price, $2.95, available at Modesto Truck Plaza on S. 7th St.

Nationwide, the average price per gallon Wednesday was $3.026, down from $3.28 a year ago and $3.34 just last month. In car-happy California, the average Tuesday was $3.30, compared with $3.72 a year ago and $3.70 last month.

According to AAA, the change is attributable to a sharp decline in the price of crude oil, coupled with the seasonal drop generally seen at this time of year.

Cynthia Harris, AAA of Northern California spokeswoman, said the days of gasoline under $3 per gallon are likely numbered.

“That’s only a temporary situation,” Harris said.

Still, the respite is welcome news for Johnson and all the other drivers out there. It was just two years ago that the average price hit its all-time high. On Oct. 9, 2012, Californians paid an average of $4.67 per gallon of gas, according to AAA.

Prices have been dropping for several weeks, pushed down by plummeting crude oil prices and an abundant supply of oil produced in the United States, Harris said. Consumption of gasoline is down as drivers have cut how much they drive and more fuel-efficient hybrid and electric cars populate the roadways. California has already switched to the less-expensive wintertime blend of gasoline and there have been no major storms or refinery problems that would push prices back up, she said.

“We’re going to continue to see prices fall,” Harris said. “They should stabilize at some point, but it’s wait and see.”

But to see a statewide average that low would be pretty incredible.

“We’re at $3.39 (statewide) right now,” Harris said. “That would really be something if we got below $3. We haven’t seen that in many, many years.”

The Fresno Bee contributed to this report.

This story was originally published October 28, 2014 at 3:37 PM with the headline "Modesto-area gas prices dip below $3 per gallon."