Pump Price Tumbles in California

The average pump price in California fell nearly 8 cents a gallon in the last week, but rising prices in the Midwest and New England held the nationwide decline to less than a penny, the Energy Department said Monday.

California’s average cost for a gallon of self-serve regular dropped to $2.335, down 7.7 cents, according to the department’s Energy Information Administration, which conducts a weekly survey of 800 filling stations across the country. The price was 14.3 cents higher than it was a year ago.

The average U.S. retail price for regular-grade gasoline slipped 0.7 cent to $2.147 a gallon, the ninth straight week of declines. The average was up 23.6 cents from this time last year.

In the EIA’s latest weekly survey, the West Coast states saw the largest decrease in retail gasoline prices, as they fell 7.1 cents to $2.318 a gallon. Average gasoline costs rose 6.4 cents to $2.118 a gallon in the Midwest and 0.4 cent to $2.111 a gallon in New England. The Gulf Coast had the cheapest gasoline at $2.077 a gallon, down 2.1 cents.

Among major cities, Houston had the cheapest fuel, down 4.2 cents to $2.01 a gallon. Miami was the most expensive at $2.388 a gallon. Los Angeles was close behind at $2.36 a gallon.

The average price for diesel fuel dropped 5.4 cents to $2.425 a gallon, the lowest level in 17 weeks but 36 cents higher than a year ago. In California, diesel cost an average of $2.486 a gallon, down 7.3 cents.

President Bush said Monday that high gasoline prices amounted to a tax on consumers and businesses, and he called on Congress to pass legislation to promote construction of more oil refineries to boost fuel supplies.

The EIA said the average U.S. pump price for regular had dropped 92 cents since reaching a record high of $3.069 a gallon in early September after Hurricane Katrina.

Bush, in remarks to workers at a manufacturing plant in Kernersville, N.C., backed legislation to encourage refinery construction.