Santa Rosa’s average price for a gallon of regular gas has inched down to $4.436 after skyrocketing within a few days to a record $4.65 two weeks ago. Why our are gas prices so crazy?
There’s an excellent story in the Los Angeles Times by Ken Bensinger that explains it all. And he writes that Californians can expect more wild price spikes.
Basically, California is an island when it comes to gas production. The state’s air pollution regulations require a special gas used nowhere else in the U.S., and most of that gas is made in California. So there’s no real competition from refineries in other states, where the gas might be able to be made cheaper.
When prices jumped early this month, Bensinger writes, “the state’s oil refiners were raking it in. For the week that ended Oct. 8, when the average price for a gallon of gasoline in California hit a record high of $4.67, the portion of the retail price going to refiners, or margin, jumped to $1.22 a gallon. That was up 75 percent from the previous week. And it was nearly triple the average margin of 42 cents a gallon this year, according to California Energy Commission data.”
As is usual, prices haven’t dropped as fast as they climbed. Santa Rosa’s latest average price, as reported Monday by AAA, was down about 2 cents a gallon from Sunday’s report. But a month ago, before the spike, the average was “only” $4.16.
It seems like someone is getting ripped off. Federal and state authorities investigated past price spikes but never determined anything illegal.
As to where gas prices are going, Patrick DeHaan, a senior petroleum analyst for gasbuddy.com, said he expects they’ll “continue to decline, with the statewide average close to $4.05 by Thanksgiving. Prices haven’t fallen faster as stations enjoy improved margins — there is apparently a lack of vigorous competition at the moment. Having said that prices will decline, albeit at a slow rate.”
To read the full Los Angeles Times story, CLICK HERE.
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Art
“It seems like someone is getting ripped off. Federal and state authorities investigated past price spikes but never determined anything illegal” Of course not, they never do, someone is getting a kickback from this, I wonder who?
October 22nd, 2012 2:36 pm
KC Frey
The oil companies run the world and there are no regulations for them EVER.
October 22nd, 2012 2:41 pm
Rick Tatum
Of course State and Federal authorities will not find any wrongdoing. The increased tax revenue from high prices makes them happier than a clam at high tide.
October 22nd, 2012 3:04 pm
Sharon
Is this supposed to make me feel better? Not.
October 22nd, 2012 3:49 pm
EspinoMaximo
CARB and EcoCrats in Sacramento.
October 22nd, 2012 4:08 pm
Csr1966
When the refinery’s had a fire,the public paid to repair it. When their pipes were damaged again, prices rose again. No refinery has ever lowered any price and they have stated nothing contrary to that.
If I were to raise a tenants rent because of poor maintenance on our part. I would get sued.
October 22nd, 2012 7:05 pm
John
Walk or ride a bicycle as much as possible. That’s keep them from getting your money at the pump.
October 22nd, 2012 7:43 pm
Bob D.
This is new? CA legistlators have made the CA gas market a captive to a small amount of producers in the name of envinronmentalism. The gas producers then don’t complain because they have a captive retail market.
Don’t blame the playa’s, blame the game. Our government could change the law and let CA retailers buy on the open market at any time.
October 22nd, 2012 7:55 pm
Mike W.
Instead of acting like a bunch of helpless enslaved apes(which you really are), how about engaging brain and finding solution.
Here, I’ll do it for you. Solution to expensive gasoline & diesel prices:
Solution #1:
Go to CraigsList, go to the Cars For Sale section. Search for “cng” – voila, a list of reasonable priced($1,500 – $10k) dual fuel & CNG only vehicles.
CNG is currently $2.20 in Santa Rosa and in most parts of the state.
CNG is naturally 130 Octane, perfect for turbo, high compression gas engines & even diesel engines(which can run up to an 80% CNG/20% diesel mix, giving more power & 40+MPG on big trucks).
CNG is a renewable fuel, because you can produce it locally with Anaerobic Digesters (http://en.wikipedia.org/wiki/Anaerobic_digestion)
CNG is MUCH safer than gasoline, and the tanks are build to withstand dynamite blasts.
Go to eBay & search for “CNG Kit” for kits to convert ANY vehicle to run duel fuel(gasoline or CNG)
Solution #2
Research “HHO” aka “Browns Gas” aka “Water Torch” aka “Oxyhydrogen”
The perfect gas for energy. Highly suppressed in the US by big industry. Hydrogen & Oxygen in a perfect 2:1 ratio. After it burns, it recombines into water. Yes, an IMPLOSIVE expression of energy as opposed to explosive. Pretty nifty, especially when you then can reuse that water as fuel. Oh, by the way, the very first internal combustion engine was designed and run on this amazing stuff http://en.wikipedia.org/wiki/De_Rivaz_engine
http://www.waterpoweredcar.com/stanmeyer.html
Solution #3
Research “Hydraulic Car” – What produces torque(the real measurement of power) more efficiently than a hydraulic system? Also highly suppressed technology by the auto industry…but they’re letting UPS use it on their trucks, again, only big business before humanity. http://hybridvehicle.calpoly.edu/
http://www.motherearthnews.com/Green-Transportation/1978-03-01/This-Car-Travels-75-Miles-on-a-Single-Gallon-of-Gasoline.aspx
Solution #4
Refine your own diesel fuel from used engine oil by simple distillation. http://www.ehow.com/how_7861173_distill-motor-oil-diesel-fuel.html
Solution #5
Find a source of quality used cooking oil to filter & use as WVO in your diesel. – CNG can be added to produce a cleaner & more powerful burn as well.
Solution #6
Learn to distill your own high proof alcohol from a variety of natural sources.
Ford Motor Company had produced cars as early as 1911 that ran off alcohol http://youtu.be/5qDYoEupI28
I could go on, but I’d feel bad(not really) if I ruined your view of the world. There is nothing friendly about this place. Our lives have ALWAYS been controlled to the max by the “powers that be”. Control of energy is key to controlling the masses. If we all had free energy, we’d be free, off grid, and they don’t want that. I also know many cures for all cancers, bacterial/fungal/viral infections & diseases, but that’s for another post…if you’re lucky.
(meaning, —- the school system!! Think for yourself!)
Oh, and I’m a highschool drop out
October 22nd, 2012 10:47 pm
mike abel
the pump is a gun to my head and i have to pay there price or else i walk, bike, call a cab, or take buses on there time and route Schedule
October 22nd, 2012 11:29 pm
G
Its funny when you see headlines about a certain politician demanding to know why the prices are so high, when in fact it was their fault.
October 23rd, 2012 7:42 am
scot
Keep voting democrat if you like the EPA and its regulations taking over your life. Cap and trade hasn’t even hit, yet.
October 23rd, 2012 7:46 am
Bulldog
Price controls are long overdue ,it seems to me They want Breakdowns all the time ,means $$$ for them.
October 23rd, 2012 10:23 am