SACRAMENTO, Calif. (KTXL) -- Prices for regular unleaded gasoline peaked at $4.08 per gallon in mid-October. But two days before 2020, the price of gasoline had dropped 70 cents.
Costco members were lining up at the Exposition Boulevard store Monday for the lowest prices in Sacramento at just $2.89 per gallon. The store joined a handful of non-membership stations in the area, like the Speedway gas station on Arden Way and Fulton Avenue, who matched the low price if customers pay cash.
Brian Barch, a local resident who tracks gas prices, said the low price was surprising.
"Actually I gave her 40 bucks because I thought I would need more than that and it only took 20," he told FOX40.
California gas prices skyrocketed after several refineries shut down for maintenance and repairs around the same time a major Saudia Arabian oil facility was knocked out by terrorists.
Higher state taxes, in combination with 20% of all Saudi oil production exported to California, drive gas prices in the state higher than the national average. Yet, recent crude shipments from South Korea, Europe and the Carribean are now in the pipeline, paired with reduced winter travel, which means more supply than demand.
"I don't know why (gas is cheaper). I just love it," laughed Rancho Cordova resident Tyrone Lawrence.
Lawrence traveled from Rancho Cordova to the Arco gas station at Howe and El Camino avenues, which matched the lowest prices but takes debit and credit cards.
"On the other side of town it's like $3.20," Lawrence said. "What'd I pay? Yep, $2.89. It's going down every day."