Saturday
October
25
2014
2:24 pm
Weather
  Search Again
  Home
  Local News
  State / National / World
  Sports
  Opinion / Letters
  Business
  Arts / Entertainment
  Lifestyle
  Obituaries
  Calendar
  Submit Event
  Comics / Games
  DJ Designers
  Archives
  Advertise With Us
  About Us
 

Check out our archive of Dining Guides - Yum!

Gas prices hit all-time high
October 08, 2012, 05:00 AM By Christopher Weber The Associated Press
LOS ANGELES  — California motorists faced another day of record-breaking gasoline prices Sunday, though relief appeared to be on the way.

In its latest update early Sunday, AAA reported that statewide average price for a gallon of regular unleaded gasoline is $4.655. Saturday’s average of $4.6140 was the highest since June 19, 2008, when it was $4.6096.

The four-penny-per-gallon jump Sunday was less than Saturday’s increase, which was 12 cents.

Sunday’s price, like Saturday’s, was the highest in the nation, with the Golden State leapfrogging Hawaii as the state with the most expensive fuel due to a temporary reduction in supply. Californians are paying 24 cents per gallon more than motorists in Hawaii, according to the AAA report.

In some locations, fuming motorists paid $5 or more per gallon while station owners had to shut down pumps in others.

"I seriously thought it was a mistake on the sign when we pulled in,” said Nancy Garcia, 34, while filling her Honda Accord at a Chevron station in the Los Angeles neighborhood of Highland Park. She paid $4.65 a gallon for regular grade and said she couldn’t afford to fill her tank all the way.

AAA’s Daily Fuel Gauge report said the national average both Saturday and Sunday was about $3.81 a gallon, the highest ever for this time of year. However, gas prices in many other states have started decreasing, which is typical for October.

The dramatic surge came after a power outage Monday at a Southern California refinery that reduced supply in an already fragile and volatile market, analysts said, but the refinery came back online Friday and prices were expected to stabilize in the coming days.

Patrick DeHaan, senior petroleum analyst at GasBuddy.com, predicted the average price could peak as high as $4.85.

"There is some relief in sight but probably not for a couple of days. Early next week is when we may see some more significant declines ... but at retail prices, prices may climb for the next two to three days before they start to come down,” he said.

When supplies drop, wholesale prices rise. Then distributors and station owners have to pay more to fill up their station’s tanks. They then raise their prices based on how much they paid for their current inventory, how much they think they will have to pay for their next shipment, and, how much their competitors are charging.

A web of refinery and transmission problems is to blame, analysts said. The situation is compounded by a California pollution law that requires a special blend of cleaner-burning gasoline from April to October, said Denton Cinquegrana, executive editor of the Oil Price Information Service, which helps AAA compile its price survey.

"We use the phrase ‘the perfect storm,’ and you know what, this current one makes those other perfect storms look like a drizzle. I don’t want to scare anyone, but this is a big problem,” Cinquegrana said. "Run-outs are happening left and right.”

Among the recent disruptions, an Aug. 6 fire at a Chevron Corp. refinery in Richmond that left one of the region’s largest refineries producing at a reduced capacity, and a Chevron pipeline that moves crude oil to Northern California also was shut down.

Gov. Jerry Brown ordered state smog regulators Sunday to allow winter-blend gasoline to be sold in California earlier than usual to help drive prices down.  Winter-blend gas typically isn’t sold until after October 31. Few refineries outside the state are currently making summer-blend gas, putting the pressure on already-taxed California manufacturers.

In some locations, fuming motorists paid $5 or more per gallon while station owners had to shut down pumps in others.

A station in Long Beach had California’s priciest gas at $6.65 for a gallon of regular, according to GasBuddy.com. Meanwhile customers at an outlet in San Pablo paid just $3.49, the lowest price in the state.

The average for a gallon of regular was $4.69 in Los Angeles, $4.71 in San Diego and San Francisco, $4.55 in Sacramento and $4.90 in Santa Barbara, according to GasBuddy.com.

———

Contributing to this report were AP writers Sandy Shore in Denver, Gillian Flaccus in Los Angeles, John Marshall in San Francisco and Gosia Wozniacka in Fresno.


Print this Page Print this Page |  Bookmark and Share
<< Back
 
  


 
You are in the Archives

Exit
  RSS feed RSS
Daily Journal Quick Poll
 
What is the most important issue facing the United States right now?

Ebola
Islamic State
Income gap
Russia/Ukraine
Immigration
Health care
The economy
 
 
 

 
 
  
 
  
 
 
 
 
©2014 Daily Journal - San Mateo County’s homepage