Support for LAist comes from
We Explain L.A.
Stay Connected

Share This

This is an archival story that predates current editorial management.

This archival content was written, edited, and published prior to LAist's acquisition by its current owner, Southern California Public Radio ("SCPR"). Content, such as language choice and subject matter, in archival articles therefore may not align with SCPR's current editorial standards. To learn more about those standards and why we make this distinction, please click here.

News

Gas Prices Continue to Drop, Here's Why

Stories like these are only possible with your help!
You have the power to keep local news strong for the coming months. Your financial support today keeps our reporters ready to meet the needs of our city. Thank you for investing in your community.

5b2c56504488b3000927ea0e-original.jpg

This will never get old. Today marks the 79th day that gas prices have consecutively dropped. The current average price of a regular gallon of gas is $1.912. Statewide, it's a penny cheaper and about 12-cents cheaper nationally. So why is this happening? We asked Marie Montegomery over at the Automobile Club of Southern California (AAA): "We had price levels that were probably unsustainable earlier this year. They were based on not the laws of supply and demand, but where investors perceived where their money would be safest. They were buying up commodities like oil and gasoline futures and prices skyrocketed. Then when all this economic turbulence occurred in September, the bubble burst and everything spiraled down." Boy, did it ever.