Bay Area gas prices are down and likely to stay down for the holidays, something most motorists are down with for sure.

The cost of a gallon of regular gas dropped six cents here compared with a month ago, auto association AAA said Tuesday, and prices are expected to stay low through December. Prices usually go down after Labor Day and remain low until spring because fewer people are going on driving vacations, driving down demand and hence prices.

The price of crude oil fell 37 cents Tuesday, closing at $79.05 a barrel and reinforcing the downward trend. Crude oil is the biggest ingredient of gasoline, and gas prices almost always track the cost of crude.

"It is likely that oil prices will continue to

decline throughout the rest of the year, unless something huge impacts the economy or the employment rate," said AAA spokesman Matt Skryja. "As far as any long-term substantial increase, that's not likely to happen until next year."

A gallon of unleaded gas now costs $2.95 in Fremont, down 4 cents compared with a month ago; $2.99 in San Jose, down 5 cents; $3.04 in Oakland, down 4 cents; $3.04 in Pleasanton, down 6 cents; and $3.11 in San Francisco, 6 cents less than last month, according to AAA.

"A balancing act is in effect," Skryja said. "A weak dollar is spurring investors to buy oil, which is helping to drive up the price per barrel." On the other hand, there's lots of oil in reserve and not much demand, Skryja said, helping


Advertisement

to keep Northern California prices relatively low.

This is the second month in a row gas prices have dropped in the Bay Area, but motorists filling up at a Costco near the freeway in Richmond didn't seem grateful.

"Big deal," said Gilda Waldman of Richmond. "They're (oil companies) still flush with cash. They jack up the prices whenever they want to make a profit."

In a choice turn of phrase, Richard Morehead said, "Big oil has us over a barrel. They manipulate prices to maintain the highest level of profit."

As a sales manager, Morehead drives many miles every day, and sees the effects of the recession first-hand. "I've been selling advertising for 40 years, and I've never seen such fear," the Oakland resident said.

Kris Hardie had quite a different perspective.

"I would prefer to pay more for gas if some of the money would go to solve emission problems," said Hardie, who works from home. The Berkeley resident would like to see a gas tax that would help fund alternative transportation programs.

Sergio Gutzalenko was philosophical about gas prices.

"Gas is way more expensive in Europe. Americans can't be spoiled about gas forever," the Berkeley resident said. "Even if it hits $4 a gallon — it would suck, but it is what it is."

Reach Janis Mara at 925-952-2671. Follow her on Twitter at www.twitter.com/jmara.