California's Coronavirus-Related Gas Price Drop Ends

The average cost of a gallon of gasoline in California has increased for the first time in months after dropping steadily due to state and local stay-at-home orders.

On Wednesday, the average stood at just over $2.74, close to half a cent higher than the day before, according to the American Automobile Association.

"As shelter-in-place orders continue to be relaxed, we expect to see prices begin to level off and start to increase as more drivers hit the roads," said Sergio Avila, a spokesman for AAA Northern California, Nevada and Utah.

The small increase marks the end of a trend that actually began in late October when the average was more than $4 per gallon, according to Avila.

The price gradually fell through the winter. In March, following California's orders for people to stay home, the price at the pump plummeted to its lowest levels since the end of 2016, according to state energy officials.

The California Energy Commission said the drop in demand for gasoline and jet fuel was so severe, the state's refineries in late April cut production to the lowest amount in the last 40 years.

The reduction in oil processing led Bay Area refineries to cut more than 1,000 contract workers and Marathon Petroleum to shut down its Martinez plant.

But analysts say these price changes seem to indicate an increase in demand as some Californians return to driving.

— Ted Goldberg (@TedrickG)