WALNUT CREEK – An economic soup of mixed signals and severe weather has helped keep gas prices on a downward trend over the last few weeks.

 

According to the latest report from AAA Northern California, average gas prices in all but six metro areas across the northern part of the state have dropped below the $3 a gallon mark.

 

Out of 25 metro areas where AAA tracks gas prices across Northern California, all but eight have seen a double digit decrease in the average price compared to AAA’s last survey on January 12.

 

“Weakening demand for gasoline, due to severe weather throughout the country, has helped to keep gas prices on a downward path,” said AAA Northern California spokesperson Matt Skryja. “Although positive economic data was released last week, which normally would lead to a rise in oil prices, investors were not inspired to buy, because many felt the data masked a poor economic trend.”

 

California’s average gas price is the third highest among all 50 states according to the latest report from AAA, which tracks gasoline prices as a service to consumers.

The Golden State’s average for a gallon of regular, unleaded gasoline is $2.96, down 10 cents since last month’s report.

 

For perspective, that’s 74 cents more than California’s average price on this date last year, when it was $2.22.

 

Northern California gas prices are now averaging $2.94, down 11 cents from last month.

 

In the San Francisco Bay Area, motorists can expect to pay an average price of $3.04, a nine-cent drop. The national average price of $2.64 is down by 11 cents, which is 72 cents more than the national price on this date last year, when it was $1.92.

 

Oil prices were recently under tremendous downward pressure that pushed prices to their lowest levels in nearly two months.

Persistent doubts about the domestic employment environment, the threat of a second European recession, and a strong showing by the U.S. dollar were the primary motivators for last week’s lower oil prices.

A growing number of market analysts believe the rise in oil prices at the beginning of 2010 was an example of market exuberance that never really had legs to stand on.

 

The least expensive average price in Northern California can be found in Marysville where unleaded is $2.74.

Of all the metro areas in Northern California where gas prices are tracked by AAA, Tahoe City has the highest average price at $3.30 for the second month in a row. It’s also the highest price in the lower 48 states.

The least expensive gasoline in the country is found in Springfield, Missouri, where the average price of gas is $2.34.

Wailuku, Hawaii, holds the dubious crown for the highest average price in the nation, at $3.79 per gallon.