The automobile association reported that at $2.89, the price of gas in California is down 3 cents since last month, making it $1.62 less than the state's average price on this date last year. In comparison, the price of gas in the Bay Area, at $2.98, remains the same as last month.
"California is among those states that have the most noticeable low demand for retail gasoline," AAA spokesman Matt Skryja said in a statement. "This may be attributed in part to state budget problems, which aren't helping to inspire confidence in the economy...it is unlikely consumers will see big swings in gasoline prices any time soon."
The least expensive gas in the Bay Area can be found in Fremont, where the average price is $2.85, a 2-cent drop from last month. San Mateo has the highest average price at $3, an increase of about 4 cents over last month.
The decline of retail gasoline and crude oil prices can be attributed to weakened U.S. and world economies, according to analysts. Market oil prices have declined almost 20 percent over the last two weeks alone.