At $4.72 a gallon, San Diego gas prices are at the highest level since 1918
At $4.72 a gallon, gas prices have shattered a 94-year record high
even after the price is adjusted for inflation. The current average
eclipses the all-time record high of $4.64 a gallon set in June of 2008.
and 40¢ over the weekend. If the current price hike is sustained
it could cost the average commuter an estimated $400 to $750 a year.
In response, Governor Brown has ordered CARB, the California Air Resources
Board to allow refineries to sell their inventories of winter blend gasoline,
claiming that it will improve reserves of gasoline by as much as 10% and
alleviate the alleged shortage of fuel in California (see LETTER to CARB here).
Winter blend gasoline vaporizes quickly when temperatures exceed 100
degrees farenheit. Because the winter blend can literally boil away into the
atmosphere as vapor on a hot day, CARB usually does not allow it to be sold
until after October 31, when the weather is less hot (click here for an
explanation of Reid Vapor Pressure).
Meanwhile, Senator Feinstein has asked the FTC, the Federal Trade
Commission to investigate California's refining industry to see if this
unprecedented price hike was the result of unlawful market gaming by
the oil industry. Historically, the FTC has been lackluster in its efforts to
ensure a free market in California. Meanwhile, California refiners have been
exporting gasoline overseas to keep supplies tight on the West Coast.
With gas prices at an all-time inflation adjusted high of $4.72 a gallon, the
strategy seems to be working.
morning that same oil (WTI) was selling on the New York Exchange
costs 88¢ less per gallon than it did in 2008. In other words, this is not
However, many wholesalers are posting a "lower" price, but aren't selling
fuel, so the price reduction creates a statistical illusion of a downward
showed a decrease of 23¢ a gallon since Thursday, but this huge downward
move is still a minor decline from a Mount Everest style price spike of 75¢ since
dealersare accounted for, the price increase in the last week Monday has been
|CHANGE (lst rpt)||SATURDAY||THURSDAY||10/1/2012|
|0.3620||San Diego RUL||4.690||4.328||4.162|
|0.0450||San Diego DSL||4.500||4.455||4.431|
|0.3140||Los Angeles RUL||4.661||4.347||4.184|
|0.0410||Los Angeles DSL||4.541||4.500||4.476|
|0.3200||Orange Cnty RUL||4.650||4.330||4.162|
|0.0370||Orange Cnty DSL||4.493||4.456||4.442|
|0.3230||San Bern RUL||4.621||4.298||4.146|
|0.0340||San Bern DSL||4.479||4.445||4.410|
|0.0393||SOCAL DSL Avg||4.503||4.464||4.440|