For Immediate Release: October 25, 2006
Media Contact: Rob Schlichting - 916-654-4989

Gasoline production high as turnaround
season begins; retail prices continue to fall

Sacramento - Production of California gasoline continued above the one-million-barrels-a-day mark for the fourth straight week, according to the Weekly Fuels Watch Report issued today by the California Energy Commission.

Even though a number of California refineries experienced planned and unplanned maintenance, production of gasoline for use in the state averaged 1,066,429 barrels a day for the week ending October 20, 2006. The figure represents a 3.4 percent increase from the previous week and 11.4 percent better production than a year ago. Inventories at the refineries increased 11.7 percent and were 15.6 percent higher than last year's totals. Refiners traditionally build inventories early in the "turnaround" season to cover any drops in production that occur as facilities are taken off-line for maintenance.

In the eleventh week of declines, California's retail price for regular gasoline fell 6 cents, averaging $2.48 a gallon for the week ending October 23, 2006.

Production of California's Ultra Low Sulfur Diesel (ULSD) was off 3.7 percent from the previous week but was still 21.5 percent higher than last year's comparable diesel production. Inventories of ULSD fell slightly - 1.2 percent - but were 50.9 percent more abundant than comparable supplies a year ago. The statewide price of diesel fell to $2.67 a gallon for the week ending October 23, 2006, the lowest average retail price since the beginning of March 2006.

Meanwhile, the price of Alaska North Slope crude oil fell to its lowest point since June 2005. On October 20, 2006, Alaskan crude sold for $51.82 a barrel, down from this July's all-time high of $75.73.

Today's entire Weekly Fuels Watch Report can be seen on the Energy Commission's Web site at:

www.energy.ca.gov/database/fore

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Editor's note:
The figures released today are preliminary and may change slightly over time. This summer the Energy Commission is also posting a weekly version of its monthly Petroleum Watch, which provides useful background information on petroleum markets and California refineries. You can find the report on the Energy Commission's Web at:

www.energy.ca.gov/consumerfuels/

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