Gas under $4 a gallon in California? How long will this Christmas miracle last? | Opinion

Think of it as an early Christmas present for adults.

Gas has dropped below $4 a gallon at many locations, in a state notorious for out-of-control prices at the pump.

As of Tuesday night, the cheapest gas in the Golden State was $3.25 a gallon for regular at an Arco station in Ceres, located near Modesto, according to GasBuddy, a price-tracking website.

But don’t get too excited. The average price per gallon in California was $4.60, and that was much higher than Tuesday’s national average of $3 a gallon, according to AAA.

At least ours wasn’t the highest-priced gas in that nation, however. Hawaii takes that title; a gallon of regular there cost $4.70 on Tuesday. (That could, of course, have already changed.)

Californians weren’t complaining, though. Along with rainfall totals, residents have been watching the falling gas prices — and liking what they see.

A mini ‘price war’

Even in areas of of the state where you might least expect it, gas dipped below $4 a gallon. That was the case in Morro Bay, a small coastal city in San Luis Obispo County that’s a major draw for tourists.

There was a price war at three stations located in close proximity to one another on Morro Bay Boulevard. Sinclair sold gas for just $3.61 a gallon on Tuesday, trailed closely by $3.63 at the nearby Mobil and Shell stations.

“This is the festival season, so people are coming and joining us so everybody’s happy,” Sinclair employee Kuldeep Kumar told KSBY news.

SLO County’s metro area often has the dubious distinction of having the highest gas prices in the nation. Those higher prices have long been a sore point with locals, especially since San Luis Obispo County is in an oil-producing region and, up until early this year, was home to an active oil refinery.

But the good news about falling oil prices was not lost on locals, who were seeking out stations with the lowest gasoline prices and bragging about how (relatively) little it cost them to fill up their tanks.

At the same time, some were skeptical; they saw the low prices as a sign that the oil industry has been guilty of price gouging all along. Otherwise, wouldn’t prices always be this low?

They have other questions: Why the dramatic decrease in prices now? And how long will this last?

Lower prices ‘preserve the public peace’

According to USA Today, an increase in gas production coupled with lower demand has led to a global price decrease, though OPEC has announced plans to cut oil supply during the first quarter of 2024.

Still, demand is expected to dip even lower in 2024 on account of less commuting, more fuel-efficient vehicles and more electric vehicles, according to the federal Energy Information Administration.

As for California’s drop in prices, that’s due in part to refineries making an early switch to the less expensive winter blend. (Yes, there are different blends of gasoline depending on the season. The summer blend — which has less tendency to evaporate at high temperatures, and is therefore better for air quality — can add 15 cents a gallon to production costs.)

We can thank Gov. Gavin Newsom for that small favor. He requested the state Air Resources Board to allow the earlier switch to the winter blend.

“This action is necessary ... for the immediate preservation of the public peace, health and safety or general welfare,” the Air Resources Board said in a news release.

The public peace? Seriously? Was the Air Board expecting riots at the gas pumps?

Got some driving to do? Fill up now

As to the question of how long this will last, don’t get your hopes up.

Energy analyst Patrick De Haan, known as the GasBuddy Guy, says prices are unlikely to go any lower.

“We are likely at a bottom for #gasprices for the time being,” he posted Monday on X. “GasBuddy data showing intraday increases in the national average, and with some states seeing prices cycle, retail prices are likely to rise going into Christmas. Fill up today and avoid some of the potential rise!”

You heard the man. Fill up now — and please drive safely.