Here's Why California Gas Prices Continue to Rise Sharply
Prices at gas pumps in California keep rising in contrast to the gas prices in the rest of the country. AAA said that while the national average price per gallon of regular gas is $3.77, California is paying $6.04, Local News 8 reported.
According to the figures, the same gallon in California now costs 76 cents more than it did a month ago, 55 cents more than it did a week ago, and 16 cents more than it did on Tuesday.
"I'm sure drivers that pulled into stations and saw that $6 mark again, you think, 'Back to the summer and is it happening again?'" said John Treanor with AAA. The travel agency keeps track of fuel price changes.
According to Treanor, it is a simple supply and demand equation. He noted that oil production is being slowed down by scheduled and unplanned maintenance of California and Washington state refineries.
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Oil Refinery Maintenance Causes Gas Prices to Skyrocket in California
California's fuel supply is extremely limited due to a series of planned and unanticipated oil refinery maintenance concerns, said Doug Shupe, corporate communications manager at Automobile Club of Southern California.
Energy Information Administration noted that West Coast fuel inventories are at the lowest level in about a decade, the Times of San Diego reported. That means gas supply will be tight, causing volatile gas prices, until refineries return to normal operations.
Shupe told City News Service that there might be "some relief" in November when stations can once again sell winter-blend gas, which is cheaper. After dropping $1.342 over 98 days, the national average price reportedly went up for the ninth day in a row by 1.7 cents, or at $3.782.
It has gone up 10.8 cents in the last nine days, including 1.8 cents Wednesday. Despite the current series of increases, the average price across the country is still $1.234 less than the record $5.016 set on June 14.
California Governor Gavin Newsom's Solution to Skyrocketing Gas Prices
Governor Gavin Newsom asked the California Air Resources Board to allow oil refineries to sell cheaper winter-blend gasoline earlier in response to rising prices at the gas pumps.
Newsom's Friday letter said that California refineries should produce a summer-blend gasoline until October in most areas of the state. ABC 7 reported that winter-blend gasoline is allowed to be distributed starting November 1.
The governor wanted the winter-blend gasoline to be sold immediately because it costs less to make and will bring down gas prices. Newsom said that if prices keep going up, there could be big economic problems and "unacceptable price effects for consumers and small businesses."
"In light of the dramatic increase in gas prices that California is experiencing, we should not wait until the end of the month to start distributing or to ramp up production of our winter-blend gasoline," the governor said in the letter.
He added that allowing refiners to switch to winter-blend gasoline earlier might enhance gas supply swiftly and add a much-needed safety valve with no impact on air quality.
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This article is owned by Latin Post.
Written by: Bert Hoover
WATCH: California Gas Prices Continue to Skyrocket - From FOX 11 Los Angeles
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