Gas shortage shutters Costco stations, prices skyrocket

[dkf]

California had its largest single-day gasoline price spike in almost five years Thursday, leading to long lines at the pump, gas shortages and even station closures.

Experts said the price increases could continue for weeks and the average might even break the $5 mark. Already by Thursday afternoon, at least five Los Angeles area gas stations had crossed the $5 per gallon mark, according to GasBuddy.com, including one charging $5.29 per gallon in Burbank and another at $5.11 in Norwalk. One station in Calabasas was even charging $5.69.

"We are looking at the highest California prices ever," said Tom Kloza, chief oil analyst for Oil Price Information Service, which compiles the price data for AAA.

A refinery closure, a contaminated pipeline and the state's strict pollution limits are all, in part, to blame, experts said. Gasoline inventories across the state are lower than they have been in more than 10 years.

http://www.contracostatimes.com/california/ci_21698765/gas-shortage-shutters-costco-stations-simi-northridge-and

When Errol Emrich drove by a Shell station in his San Jose neighborhood last weekend, regular gas was selling for $4.05 a gallon.
On Monday, it was $4.15. On Tuesday, $4.25. And this weekend? Analysts say it could reach a whopping $4.40.

The spike sent Emrich to a Rotten Robbie on Sierra Road, where last week he found gas for $3.97. On Tuesday it was at $4.25, and Emrich was not happy.
"I see no reason for this at all," he said. "Sounds like a load of rubbish to me."

http://www.businessinsider.com/california-gas-prices-2012-10

[Scootaloo]

1. Funny how this happens every four years, always in October n/t

[dkf]

5. Maybe it's due to the switchover to winter mix?

"In recent weeks, California refineries have dropped production in anticipation of switching over to a "winter blend" of gasoline, which emits more polluting emissions, next month."

[DJ13]

2. Summer driving season is over, prices should fall, how can the oil co.'s increase prices?

"A refinery closure, a contaminated pipeline and the state's strict pollution limits are all, in part, to blame, experts said."

Perfect!

We're getting fucked....... again.

[RandiFan1290]

16. Don't mention the refinery closure!!!!

dkf troll wants you to believe it is all Obama's fault!!!!

[AzSweet]

3. Total and complete bullshit... funny how mitt mentioned gas prices last nigjt, too..n/t

[2ndAmForComputers]

17. Noticed that too.

Them memos sure circulate fast, don't they?

[upi402]

4. "Can you spell 'collusion'?"

Could it be political?

Could rain be wet?

[winstars]

6. "Gasoline inventories are the lowest in 10 years" Yeah, ya never need much gas in California!!! WTF!

This is such bullshit. Here in Redondo Beach in SoCal, the fucking price has gone up like .25 cents in 3 days. And we live 10 minutes from the refinery that has has had "problems"... The system is so fucking stupid for the consumer. They refuse to make enough of a product most people HAVE TO HAVE and then rip us off unmercifully all the time. And this crap is only the local type rip-off of the consumer. The speculators, OPEC, world oil market is a whole other circle of.... the words fail me... but really folks, the oughta be a law!!!

I am glad that I have and only need 2 Honda Civics for my family. I know others who need bigger vehicles for family or work purposes and this $4.50 per gallon is really hurts them.

[JDPriestly]

11. If they think this makes consumers love capitalism all the more, they are very wrong.

The 1% at it again.

Where is Occupy when we need them?

[Incitatus]

7. Gee, if only the state didn't care about how much pollution the refinery created.

[Zalatix]

19. +1 TRILLION.

[Politicalboi]

26. Yeah I liked that part too

I guess it's too bad we want water that's drinkable. Just think how much cheaper gas would be if we sacrificed our drinking water. Stupid tree huggers.

[Initech]

8. I'm calling shenanigans on this - at the usual suspects ( *KOCH* )...

[jillan]

9. This is another reason why we have to GOTV and get those drill baby drill assholes out of the way of

green energy.

When is enough going to be enough?

And of course, it will all be Obama's fault.

[abumbyanyothername]

10. Peak Oil.

Google it. Research it. Believe it.

Then check out Rob Hopkins and the Transition Movement.

If you live in West LA or nearby join us: http://www.facebook.com/WLATransition

[HiPointDem]

14. peak oil has nothing to do with a sudden spike in gas prices.

[Zalatix]

21. It has everything to do with the ongoing long-term rise, however.

[HiPointDem]

23. which is not the topic of the op, though.

[WCGreen]

12. The oil companies are punishing California for supporting President Obama....

[winstars]

13. 11:00pm local NBC news just showed gas station somewhere here in SoCal with gas at $5.69, nice

one you fucking oil companies who are (trying?)(doing?) to fuck us and our President, the bastards!!!

Made up bullshit, that effects everyone... Consumer spending, jobs you name it and the extra 1-2 dollars they are STEALING from us directly screws up the local economy. It can be $10, $20, $50 or more $$$ per week for each family (person?) that they are giving the oil companies and not spending somewhere else, in the local economy.

They purposely don't make enough so they can pull this crap!!!

[HiPointDem]

15. I would say this probably has something to do with our economic blockade of iran & our attack

on the rial.

If so, the iranians are paying a much greater price than you are. Talk to your government about it.

And it's not just california. I paid $4.18 tonight and it was about $4 last time i bought gas.

Since 2010, the United States has been steadily tightening sanctions on Iran. A good chunk of Iran’s $110 billion foreign exchange reserves is locked up in offshore accounts that are now frozen. Overseas banks have been barred from doing business with Iran’s central bank. And Iran is having trouble selling its oil abroad. Add it all up, and those sanctions have restricted the supply of dollars and other foreign currency reaching Iran.

This has made it extremely difficult for Iran’s central bank to maintain its currency peg of 12,260 rials to the dollar. Individuals and businesses are instead buying up scarce dollars and euros on the black market, often to pay for imports. As more Iranians try to trade their rials for (increasingly rare) foreign currency, dollars get pricier and the value of the rial drops.

That problem finally exploded last month. In the black markets, the value of Iran’s rial has now plunged 65 percent in the past few weeks. The dotted line on this stunning chart from Steve Hanke at the Cato Institute tracks the free-fall:



http://www.washingtonpost.com/blogs/ezra-klein/wp/2012/10/04/hyperinflation-finally-arrives-in-iran/

[hack89]

18. So why is it localized to just California?

could it be that California gas is a unique formulation (actually two: a summer mix and a winter mix) that is only produced and sold in California?

Gas prices are stable where I live.

[Ikonoklast]

20. Read this article, it explains without all the BS from above.

http://www.times-standard.com/localnews/ci_21705460/humboldt-gas-prices-spike-4-89-perfect-storm

A “perfect storm” of factors have cut supplies to the oil market in California, said AAA spokeswoman Cynthia Harris. Those include a Chevron Corp. 240,000 barrel-a-day Richmond refinery -- which has run at reduced capacity since August due to a fire, sending oil prices on their initial rise. An Oct. 1 power failure at Exxon Mobil Corp's Torrance refinery was the cause of the spike in prices this week.

Chevron's Kettleman-Los Medanos pipeline, which carries crude oil from Kern County to Northern California refineries, also shut down, Harris said. On top of that, Phillips 66 plans to perform general maintenance on two Southern California refineries this month.

Harris said the Torrance refinery may not reopen for another week, and gas prices will likely stay high for several weeks. ”Whenever we sense a shortage in supply, we feel an immediate effect at the pump,” Harris said.

...more...

[HiPointDem]

25. i don't think it is. i paid $4.18 yesterday, .18 higher than when i last bought gas 2 weeks ago.

west coast, not california.

september:

Gas Prices at Historic Seasonal High: Is Any Relief in Sight?

http://finance.yahoo.com/blogs/breakout/september-gas-prices-record-highs-relief-sight-183641708.html

october:

Gas is the most expensive it's ever been for this day in any October, and we're on track to have the worst year in history.

http://finance.yahoo.com/blogs/breakout/september-gas-prices-record-highs-relief-sight-183641708.html

[tama]

22. "Reagan Democrats"

I may be mistaken, but could that be the group of swing voters that think that cheap gas ad infinitum is their god given consumerist right, no matter what basic science says about finite fossile energy? Who switched to voting Reagan when Carter started to sound too serious about getting off the oil addictions?

[BarackTheVote]

24. Corporations try to bully and punish us

They raise their prices, they withhold hiring, or hire overseas... but it's always, "sorry, regulation," or "sorry, taxes are too high," or "the minimum wage is too much in the US!" While they rake in the big bucks. Wall St. recovered? Sitting on 2 trillion dollars? Sorry, no sympathy! I see what these bastards are doing, and it's the job of the government to PROTECT us from this kind of intimidation and shake-downs. Start nailing these guys for their unpatriotic behavior, for their treasonous treatment of the American people! Time to get draconian.

[KamaAina]

27. A power outage shuts down a whole refinery for a week?

Did this happen after Northridge? After Loma Prieta?

[KamaAina]

28. Couldn't the state create a plan for the transitions between summer and winter gas?

Oh, I forgot. This is California 2012. We couldn't plan or organize our way out of a wet paper bag.

[KamaAina]

29. How about this: Endless Summer for gas.

Just make the summer blend all year round. No more switchovers. And less pollution.