18-cent spike in L.A. drives gas prices over $4 a gallon

[Newsjock]

Source: Los Angeles Times

For the first time in nearly a year, Los Angeles motorists on average are now shelling out more than $4 for a gallon of gas. The average for regular has shot up 18 cents in the last week, a surge analysts attribute to a series of problems at the state’s refineries.

Following a February explosion, production still hasn’t returned to normal at Exxon Mobil Corp.'s Torrance refinery, said Allison Mac, an analyst with price tracking website GasBuddy. And in recent weeks, other refineries have trimmed output for planned and unplanned maintenance, she said.

Experts say California drivers are highly susceptible to such disruptions because the state is a relative island when it comes to gasoline production. California's special cleaner-burning blend is expensive for outsiders to make and deliver, causing most production to occur within the state.

And the state’s refineries often produce gasoline at near capacity, leaving little margin for supply disruptions.

Read more: http://www.latimes.com/business/la-fi-gas-prices-20150515-story.html

[Comrade Grumpy]

1. It's gone from 2.75 to 3.55 in a few weeks where I live in Northern California.

Nobody bats an eye. No public uproar. Hardly a mention.

[C Moon]

2. Gee, nobody saw this coming.

[Plucketeer]

3. If these price spikes are related to "supply"

it must mean that with the bidding going on over the shrinking "pool" of gasoline, there must be at least a few stations that can't get any fuel at all. Anyone heard of any stations not having gas cause they couldn't afford to get in on the bidding???

This is contrived bullshit from the Corporations that are helping to write the TPP that our esteemed president says is gonna be a real boon to U.S. citizens.

[seveneyes]

4. Utopia has a higher price tag

California has all the faults money can buy.

[AZ Progressive]

5. National average, its $2.69, and it's $3.81 in California

Californians always get screwed.

[daleo]

6. A state of 40 million is a "relative island" for refining?

That strikes me as unlikely.

[former9thward]

14. It is an island.

California is a “fuel island” and has no pipelines linking it to petroleum or crude oil supplies, but instead must import an increasing share of fuel from shrinking domestic and distant international sources. California has regulations that require special blends of gasoline that no other state requires.

[daleo]

17. 40 million customers is a lot

It strikes me as a market failure, that a market that size can't be reliably supplied from within. It is bigger than most countries.

[christx30]

18. How would you feel if they built more

patroleum processing plants?

[daleo]

21. There should be enough plants to reliably supply a market of that size

As long as we are using petroleum as a society. With time, we have to convert to renewables, but that is a separate issue.

[Andy823]

7. The Memorial day price hike

Happens every year no matter what. Prices alway ago up right before everyone hits the road on Memorial day, then aging before the 4th of July, and again before Labor day. Not really sure how they can justify this crap, but it happens. We still have a huge supply glut of oil. Speculators are still manipulating prices higher for oil, and even though oil is about half the price it was a year ago, somehow they can find a way to rip off the public by raising prices at the pump.

[christx30]

19. Because they have to convert from the cheaper

winter blend to the more expensive, purer summer blend. Winter blend contains butane, which is cheaper to make.

"The difference between summer- and winter-blend gasoline involves the Reid Vapor Pressure (RVP) of the fuel. RVP is a measure of how easily the fuel evaporates at a given temperature. The more volatile a gasoline (higher RVP), the easier it evaporates.

Winter-blend fuel has a higher RVP because the fuel must be able to evaporate at low temperatures for the engine to operate properly, especially when the engine is cold. If the RVP is too low on a frigid day, the vehicle will be hard to start and once started, will run rough.

Summer-blend gasoline has a lower RVP to prevent excessive evaporation when outside temperatures rise. Reducing the volatility of summer gas decreases emissions that can contribute to unhealthy ozone and smog levels. A lower RVP also helps prevent drivability problems such as vapor lock on hot days, especially in older vehicles."

more info: http://newsroom.aaa.com/2013/06/what-is-the-difference-between-summer-and-winter-blend-gasoline/

And since california's fuel requirements are different from other states, it can only be made in certain plants. Less processing capacity. And when equipment breaks down, accidents happen, that further reduces capacity.

[kimbutgar]

8. Funny I was in Maui earlier this week paid $3.07 per gallon at Costco

This is outright gouging going on by the oil companies in California, trying to hep their republican politicians take over the state. I can see the ads the rethugs blaming democrats for pollution free fuel standards we have in the state.

[PumpkinAle]

9. Has gone up to 3.39 in N. NV

Where are the politicians speaking out ---- never mind we know in the pockets of whomever is making big profits.

Why is it these refineries have so many fires - any other industry and they would be out of business, but hey isn't it convenient when they have to close a refinery here or there to clean or because of a fire?

As for the excuse about CA's blend that is 24K bs.

[bigwillq]

10. It's gone up recently in CT too

Last time I filled up, I paid $2.81/gal for regular

[quadrature]

11. boutique gasoline....whats not to like?

snobs like their special gasoline

[YOHABLO]

12. It's about $2.59 down here in Georgia.

[PasadenaTrudy]

13. Just saw $4.59 in Pasadena

Good grief!

[HooptieWagon]

15. Under $2.50 in Florida.

Over $4 in Cali...WTF?

[mnhtnbb]

16. I always find it interesting to see the gas buddy map of varying prices.

http://www.gasbuddy.com/GasPriceMap

[olddots]

20. I'm waiting for it to hit 10 dollars a gallon

then I'll make a killing when I sell .