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Gas Prices Take Plunge, Says AAA

12 February 1998

Gas Prices Take Plunge, Says AAA

    BELLEVUE, Wash., Feb. 12 -- The average price of self-serve
unleaded gasoline fell 11.7 cents per gallon since mid-December and the
national average gasoline price fell 5.7 cents per gallon between
December 9 and January 20 -- the biggest drop between monthly surveys since
1991, according to AAA Washington. Gas prices in central and western
Washington are down an average of 16 cents per gallon since Thanksgiving. The
average cost for a gallon of regular unleaded self-serve fuel is now $1.150
compared to the average Thanksgiving price of $1.318 and a Christmas holiday
average of $1.267. Last year, the March 1997 average fuel price for unleaded,
self-serve was $1.285.
    Gasoline prices have fallen for four consecutive months and nationally
have reached the lowest point since February 1996. Industry analysts attribute
the decline in prices across the country to a decrease in the spot price of
crude oil brought about by the decline in demand in Asia due to recent
economic troubles and a generally mild winter in much of the United States and
Western Europe. Also, stocks of gasoline and crude oil are up over last year's
level and there is less demand for gasoline as motorists drive significantly
less in winter months than during the spring and summer.  Competition among
gasoline retailers is strong in many areas of central and western Washington,
thus contributing to the reduction in gas prices in these areas.
    AAA Washington is a not-for-profit travel services organization with
13 offices in central and western Washington. The club provides more than
570,000 members with travel, insurance, financial and auto-related services.

                          Area by Area Comparison of
                   Self-Serve Regular Unleaded Fuel Prices


                                 President's Day  Thanksgiving    Christmas
                                      1998            1997           1997

    Bellevue/Eastside                 1.169           1.349         1.289
    Bellingham                        1.157           1.333         1.280
    Bremerton                         1.096           1.284         1.250
    Everett                           1.171           1.347         1.272
    Lynnwood                          1.177           1.339         1.270
    Olympia                           1.160           1.307         1.269
    Renton                            1.192           1.331         1.299
    Seattle                           1.220           1.350         1.320
    Tacoma                            1.159           1.329         1.289
    Tri-Cities                        1.081           1.111         1.094
    Vancouver                         1.145           1.354         1.275
    Wenatchee                         1.129           1.390         1.319
    Yakima                            1.136           1.321         1.253
    AVERAGE                           1.150           1.318         1.267

SOURCE  AAA Washington