Merced-area gas prices edge up, but slower than national pace

Locked in place for most of autumn, San Joaquin Valley gasoline prices have been on the rise over the past week, according to national fuel cost trackers.

Unfortunately for area motorists, the rising price trend might continue well into the start of 2017. The good news: California prices have not been climbing as rapidly as at-the-pump costs in most other states.

On Tuesday, the average retail price of gas in Merced was $2.59 per gallon, up from $2.57 a week earlier, according to AAA. Modesto’s average price of $2.51 was up nearly 6 cents from a week earlier, while Fresno’s average of $2.64 was up more than 3 cents, AAA reported..

The state average on Tuesday was $2.70, up about 3 cents from the week prior and about 3 cents from one month earlier. In the meantime, the national average per-gallon price of $2.29 jumped 4 cents from a week earlier and had risen 16 cents over the past month, AAA reported.

Another cost tracker, GasBuddy.com, noted that the nationwide hike in December gas prices was the highest in six years.

“Overall, the national average price of gas is 28 cents higher than where it was a year ago on this day, and prices in most metros and states across the country are higher too, with the remarkable exception being California, whose statewide average today is 13 cents lower than last year and the Los Angeles average, believe it or not, is 27 cents less than a year ago,” Gregg Laskoski, a GasBuddy analyst, said Tuesday.

Throughout the fall, California has had ample fuel supplies and few disruptions at refineries. GasBuddy said the national average has been pushed upward by OPEC’s agreement on Nov. 30 to cut oil production by 1.2 million barrels a day in 2017.

“When the Organization of the Petroleum Exporting Countries announced production cuts … we knew we were likely to see gasoline prices rise almost immediately. There’s never a good time to see gas prices rise, but ahead of the holidays just seems like the worst,” said Patrick DeHaan, another GasBuddy analyst. “Oil prices spiked after OPEC’s production cut agreement was announced, pushing gasoline prices higher in 41 states.”

DeHaan projected that U.S. motorists are likely to see their spending on gasoline rise an average $120 to $180 in 2017 due to production cuts by oil producers.

This story was originally published December 27, 2016 at 2:55 PM with the headline "Merced-area gas prices edge up, but slower than national pace."