By Khalida Sarwari
Bay Area gas prices have increased by 15 cents in the last month after gradually dropping for five consecutive months since July, according to AAA.
The average price in the Bay Area for a gallon of regular unleaded gas is $1.91, an increase of 15 cents over the past month.
San Francisco, San Jose and Oakland all saw an increase in prices, with San Francisco jumping by 17 cents for an average of $2.04, San Jose increasing by 20 cents for an average of $2.03, and Oakland increasing by 12 cents for an average of $2.05.
Concord boasts the least expensive average at $1.97, with Santa Rosa, Tracy and Vallejo following close behind with an average price of $1.98.
The statewide average price is $2.01, an increase of 21 cents in the last month. In Northern California, the average is $1.79, up 25 cents from last month.
The holiday period notwithstanding, the figures are typical for the winter months when people traditionally use less gas, AAA spokesman Matt Skryja said.
Analysts attribute the increase to tensions in the Middle East and restrictions of world oil supply by the Organization of the Petroleum Exporting Countries. The price of gas is further at risk of increasing due to a gas dispute between Russia and Ukraine.
“The fear is that the conflict that is going on in the Middle East could spill over and involve Iran and that could impact the world’s oil supply,” Skryja said, adding that there is also a fear that OPEC would cut back on supply to stabilize and raise prices worldwide.
Nevertheless, analysts foresee another decline in prices in the near future. Skryja said that demand for gas is at its lowest point of the year credited to “the huge and continued decrease in demand.”
“As long as the average price of a barrel remains under $40 and there aren’t any other huge impacts to the market, analysts believe that the price could continue on a downward trend once again,” Skryja said.
