WALNUT CREEK, Calif. – Drivers across Northern California are seeing gas prices bounce up and down like a ball in a school yard.

That bounce has gotten slightly higher over the past few weeks, as prices have generally trended upwards, according to the latest report from AAA Northern California.

In a month-to-month comparison, every metro area tracked by AAA saw an increase at the pump.

 

“Even though there has been a slight rise in the pump price over the past month, the overall up and down nature of prices across Northern California reflects the mixed signals that exist when it comes to the economy and the demand for gasoline,” said AAA Northern California spokesperson Matt Skryja.

“Uncertainly about the economy and forecasts for a highly active storm season continue to influence how investors look at oil as a commodity to invest in. These factors have helped to keep the price for a barrel of oil around the $80 mark,” Skryja added.

 

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 $3.18, up four cents since last month’s report on July 13. For perspective, that’s 13 cents higher than California’s average price on this date last year, when it was $3.05.

 

Northern California gas prices are now averaging $3.20, up five cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $3.27, which is a 5-cent increase.

The national average price of $2.78 is up by seven cents, which is 13 cents more than the national price on this date last year, when it was $2.65.

 

According to the Federal Highway Administration’s vehicle miles traveled (VMT) data, July and August are historically the months in which Americans drive the most miles. Fuel demand during these two months generally provides the support for higher fuel prices in the summer.

Last week, the Department of Energy (DOE) report showed mixed energy demand data. Gasoline demand topped 9.6 million barrels a day, the highest weekly figure of 2010 and the highest number since August 2007. The DOE report defied many analysts’ predictions, as crude oil supplies continue to rise amid the reported increase in demand.

 

The least expensive average price in Northern California can be found in Chico and Marysville where regular is $3.11.

Of all the metro areas in Northern California where gas prices are tracked by AAA, South Lake Tahoe’s average price of $3.41 is the highest. It’s also the highest price reported by AAA in the lower 48 states.

The least expensive gasoline in the country is found in Greenville, South Carolina, and Springfield Missouri, where the average price of gas is $2.54. Wailuku, Hawaii, holds the dubious crown for the highest average price in the nation, at $3.81 per gallon.

 

One way consumers can reduce the amount of money they spend on fuel is to shop aggressively for the lowest price. Now, AAA offers text alerts via mobile phone for low gas prices in your area. Sign up today at www.aaa.com/gas.

 

AAA’s Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed everyday nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.