WALNUT CREEK, Calif. – California gas prices have fallen 3 cents since reaching a peak of $3.73 over the Memorial Day holiday weekend, but prices could increase yet again this summer as the Fourth of July holiday nears.

The statewide average price for a gallon of unleaded, regular gasoline was $3.70 on Monday evening, with only Hawaii drivers paying more for fuel than motorists in the Golden State.

San Francisco drivers are paying the highest prices in the Bay Area, with prices in the heart of the City averaging just under $3.90 on Monday. The San Francisco Metro region's average price was about $3.83, according to AAA.

Gasoline demand spiked in the latest Energy Information Administration’s (EIA) report, setting a new all-time record at 9.88 million barrels per day for the week ending June 8. As demand skyrockets, U.S. gasoline inventories plummeted 2.27 million barrels, to land total inventories at 237 million, which is 5.7 million barrels below stocks last year at this time.

“If demand continues to strengthen and inventories decrease in the weeks ahead, motorists can expect gas prices do a reversal and start to increase again,” said Michael Blasky, spokesman for AAA Northern California.

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

AAA Northern California offers a wide array of automotive, travel, insurance, DMV, financial services and consumer discounts to more than 4 million members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded more than 117 years ago.