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The California State Automobile Association reports today that the average price for gasoline in Northern California dropped 16 cents last month to $1.83, the lowest since March, after oil companies overestimated consumer fuel consumption. 

AAA spokeswoman Bronwyn Hogan said, “The decreases range from 6 cents to 27 cents a gallon in Northern California, with San Francisco remaining the only city paying above $2 (per gallon).’’ 

The average price of one gallon of self-serve, unleaded gasoline in Oakland, San Francisco and San Jose was down at least 12 cents in the last month, according to the association. Concord, Oakland and San Jose tied for the biggest monthly drop of 14 cents while residents in Salinas residents are paying the lowest prices in the Bay Area at $1.81 per gallon. 

The average price this month in Oakland is $1.94 per gallon, compared with $2.08 last month. San Jose residents are paying an average of $1.93 per gallon, down 14 cents from $2.07 one month ago. San Francisco residents continue to pay the highest price, $2.05 per gallon, but that is down 12 cents from $2.17 last month. 

Association spokesman Atle Erlingsson said, “The big oil companies goofed.’’ 

Oil companies normally increase production during the summer to compensate for added travel, Erlingsson said. But a slow-down in the nation’s economy has forced many people to cut back on road trips or not travel at all, he said, and that has led to a surplus of gas. To get rid of the surplus, Erlingsson said the oil companies are selling their gas at lower prices. 

Gas prices typically drop toward the end of the summer, he said, and early forecasts indicate that will happen this year as well. 

“We’re expecting them to continue to decline,’’ Erlingsson said.