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Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down: Hoarding Next?
Zero Hedge ^ | 10/4/12 | Tyler Durden

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 it’s going to cost me $4.90 a gallon, and I can’t sell it here for $5," and another added that "we’re going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. There’s no sense in staying open. The profit margins are so low it’s not worth it."

(Excerpt) Read more at ...

TOPICS: Business/Economy
KEYWORDS: 2012; 2012issues; bhoeconomy; ca; democrats; drillheredrillnow; economy; energy; envirofascism; gasprices; obama; oil
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To: Kartographer

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.

21 posted on 10/04/2012 1:14:22 PM PDT by Ken H
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To: RBStealth

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.

Good luck...........

22 posted on 10/04/2012 1:14:49 PM PDT by deport
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To: Twotone

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.

23 posted on 10/04/2012 1:20:37 PM PDT by bgill
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To: deport

Special California blend requirements combined with West Coast Refinery shutdowns.

24 posted on 10/04/2012 1:24:48 PM PDT by thackney (life is fragile, handle with prayer)
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To: deport

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.

25 posted on 10/04/2012 1:27:04 PM PDT by thackney (life is fragile, handle with prayer)
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To: Kartographer
If we didn't have state-mandated special requirements for our gasoline here, I'm quite sure that supplies from neighboring states would be pouring in to alleviate (and make a profit from) the current shortage.

As things stand, "foreign" gasoline (i.e. from other states) doesn't meet the California requirements to be sold here.

26 posted on 10/04/2012 1:34:02 PM PDT by Bob
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To: Kartographer

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.

27 posted on 10/04/2012 1:43:13 PM PDT by Ellendra (
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To: count-your-change
California cars are special. They have very sensitive engines that will only accept a diet of special blends not available elsewhere. So the prices may seem high but this is gourmet gasoline, freshly squeezed from the finest oils.

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.

28 posted on 10/04/2012 1:48:20 PM PDT by zeugma (Rid the world of those savages. - Dorothy Woods, widow of a Navy Seal, AMEN!)
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To: thackney

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.

29 posted on 10/04/2012 1:51:45 PM PDT by deport
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To: Kartographer

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 ...

30 posted on 10/04/2012 1:54:03 PM PDT by 11th_VA (Keep your laws OFF my Big Gulp !)
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To: zeugma

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?

31 posted on 10/04/2012 3:43:17 PM PDT by count-your-change (You don't have to be brilliant, not being stupid is enough.)
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To: deport

I am in Bakersfield and filled up at $4.17 yesterday. ;(

32 posted on 10/04/2012 3:59:44 PM PDT by sheana
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To: sheana

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 matter what, you have a full tank.

33 posted on 10/04/2012 4:27:17 PM PDT by libertarian27 (Check my profile page for the FReeper Online Cookbook 2011)
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To: Kartographer

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.

34 posted on 10/04/2012 4:49:19 PM PDT by BobL (You can live each day only once. You can waste a few, but don't waste too many.)
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To: thackney

October surprise? Obama’s been attacking Big Oil since day one. Might this help Romney?

35 posted on 10/04/2012 4:51:33 PM PDT by 1010RD (First, Do No Harm)
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