California Gas Prices Set To Soar Beyond 2008 High Of $4.61

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Gas prices, San Francisco, CA

Gas prices, San Francisco, CA

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Brace yourself, Californians. Gas prices are going up. Again.

With the Golden State already paying some of the highest gas prices in the nation, California drivers will find it's going to get more costly than ever to fill their tanks.

According to Reuters, oil analyst Tom Kloza, chief oil analyst for Oil Price Information Service, expects the state's drivers will briefly see prices higher than the current all-time record of $4.61 a gallon.

Yesterday, the average price of a gallon of regular gasoline in the state was $4.31.

The soaring gas prices are due to a regrettable combination of three events.

First, state refineries have lowered production as they get ready to make the switch to "winter blend" gasoline.

Second, a power outage at a Torrance refinery combined with a partial shutdown due to a fire at a Richmond refinery to cut production severely.

And third, a crude-oil pipeline to San Francisco Bay Area refineries from the state's Central Valley has been shut for several weeks due to high organic chloride levels in the crude.

Kloza doesn't expect the record gas-price levels to last for months, but only for weeks, perhaps even a few days.

But it may offer little comfort to Californians that their gasoline costs are still far lower than in other parts of the world.

In the U.K., for example, this week's average price of £1.3883 per liter translates to $8.50 per gallon--higher even than the $8-per-gallon prices seen in London earlier this year.

Over the Labor Day weekend, U.S. gas prices hit an average of $3.80 per gallon.

Prices in California have been above $4 a gallon for many months now.


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Comments (8)
  1. An EV sure is a nice hedge against this kind of thing.

  2. Ah, looks like I made a very wise investment - lease a 2013 Volt last month!

  3. My Volt is a great peak oil insurance plan.....these high prices should explode Calif. sales in October....


  4. I think this will boost all fuel efficiency sales in CA, especially Prius, Volt and Leaf...

    Volt is the ultimate hedging vehicle. If electricity is too expensive, you can stay on gas. If gas is too expensive, you can stay in EV mode...

  5. Electric propulsion is always more efficient then w/ matter the price. Meaning best gas mpg is about 50 n most mpge is about 100. Less maintenance and lower fuel costs for electricity compared to gas too.

  6. I bet one super tanker wouldn't hold all the market manipulators
    there are in this field

  7. It never ceases toamaze me the excuse of the moment they come up with to justfy the pump price going up. A big part of the problem is the speculators on wall st. They buy up a bunch of futures, make the remark the price of oil wil be at $____ by a certain date, price jumps at the pump, we pay higher prices and they make a HUGE profit. It's a BIG game of market manipulation for profits!

  8. Did you not read the article? Three reasons why the prices are about 13% higher then a few weeks ago. That's still not much of price jump overall. Prices will be near $4/gal again in November. However, a smart person should drive an ev to bypass all this crap w/ gasoline as a fuel source. I'm likely to pounce soon on a smoking low lease rate for the Leaf for 3 years. New compact EV ranges will hopefully be at least twice that of current EVs by then.

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