Skip to comments.Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down: Hoarding Next?
Posted on 10/04/2012 12:07:55 PM PDT by Kartographer
"The squeeze is on, and people are doing desperate things," is how one independent described the situation in California. As Bloomberg reports, a shortage of supply along with drastically higher wholesale prices of gasoline has caused 'mom-and-pop' gas stations to close down as their margins are destroyed. Even larger firms, such as CostCo, are closing sites due to the shortages as Los Angeles and San Francisco gas prices jump 30-45c in a few days.
As one owner noted: "I can get gas, but its going to cost me $4.90 a gallon, and I cant sell it here for $5," and another added that "were going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. Theres no sense in staying open. The profit margins are so low its not worth it."
(Excerpt) Read more at zerohedge.com ...
What fedgov should do is declare a War on Gasoline. In no time there would be an oversupply of hi-octane gasoline at an affordable price and available to everyone who wants it.
Gas Buddy has it in the $3.80-$3.90 range in some areas.
But in the Huntington Beach area it is over $4.17 and on up to $4.70.
Maybe people are thinking this is their last chance at an island vacation. Next year, they may not have jobs and inflation will make any vacation out of the question. A last hurrah.
Special California blend requirements combined with West Coast Refinery shutdowns.
Gas prices soar on refinery, pipeline woes
Refinery problems and a pipeline closure have suddenly sent gasoline prices soaring in California, even as they fall in most of the country.
The average price for a gallon of regular gas in California jumped 5 cents overnight to hit $4.23 Wednesday, according to a daily survey from the AAA motor club. Never before have prices been so high at this time of year.
“We’re going to see a pretty pronounced spike in prices,” said Denton Cinquegrana, senior editor for West Coast fuel markets at the Oil Price Information Service. California’s record - a statewide average of $4.61 per gallon, set in June 2008 - could be in jeopardy, he said.
“I don’t think it’s out of the question,” Cinquegrana said. “The system is very short on gasoline right now.”
San Francisco’s average hit $4.33 per gallon Wednesday, while San Jose’s reached $4.28.
The price spike began Monday after two unconnected events struck refineries in both Northern and Southern California.
An electricity outage hit the Exxon Mobil Corp. refinery in Torrance (Los Angeles County) Monday morning, shutting down some of the plant’s units and slowing others. The facility typically makes about 10 percent of California’s gasoline.
More than 100 miles to the north, a Chevron Corp. pipeline that brings crude oil from Kern County to three Bay Area refineries closed the same day after the company found elevated levels of chloride in the line. The Kettleman-Los Medanos pipeline is one of three carrying crude from the southern San Joaquin Valley to the East Bay.
As things stand, "foreign" gasoline (i.e. from other states) doesn't meet the California requirements to be sold here.
If the shortages get bad enough to start squeezing the trucking industry, yeah. The shortages could get bad enough to lead to riots, giving him an excuse for postponing the election. But, high gas prices just by themselves will hurt him. Badly.
Yup, and the poor bastards pay 50¢ or more per gallon extra, and have to deal with artificial shortages like this because of those wanky blends.
Thanks..... I expected you to have some info..... CA can’t take a major shut down in auto transportation for long. The people will have to pay the price, walk, car pool or use alternates.
I was in LA last week and noticed gas lines before the weekend. I attributed it to the 405 shutdown, Carmaggedon. But maybe it was the beginning of the shortage ...
That’s why everyone in California will buy a Volt. The commercial says the owners don’t buy gas anymore (giggle, giggle). So why isn’t California covered with Volts?
I am in Bakersfield and filled up at $4.17 yesterday. ;(
I’ve seen that price in CT and NY this week. And higher. It’s over $4 in some areas of MA too.
I guess we should start buying gas like we did in the 70’s - buy high-buy low and it averages out...no matter what, you have a full tank.
This is DEFINITELY an opening for Romney in CA.
All he has to see is that he WILL NOT allow spot shortages there...since that is due to their blend requirements. Not to mention all else he can do for energy.
Come on Romney, make the Prez spend a couple of bucks to hold that state.
October surprise? Obama’s been attacking Big Oil since day one. Might this help Romney?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.