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Wholesale California gasoline prices plunge, consumers still pay up
Reuters ^ | 29 July 2016 | Liz Hampton, Jessica Resnick-Ault

Posted on 07/29/2016 8:52:37 AM PDT by Lorianne

Wholesale gasoline in California became the cheapest in the country this week, but that change has largely gone unseen at the pump, where consumers are still paying the highest prices in the continental United States to fill up their cars.

Ample inventories along with relatively stable refinery operations and imports has driven down the spot value of gasoline in Los Angeles at the wholesale level by more than 60 cents since mid-June.

However, that has not translated to similarly lower retail fuel prices for consumers because of peculiarities in California's market. The declines in the state's retail gasoline market over that period of time have averaged less than 14 cents, according to data from the U.S. Energy Information Administration.

On Thursday, wholesale California gasoline was trading below $1.20 a gallon. The spread between California's wholesale and retail gasoline markets was about $1.50 a gallon the week to July 25, about 40 cents wider than a similar spread in the New York market.

California is one of the most expensive places in the United States to produce gasoline because of the state's unique blending requirements and its relative isolation from the rest of the country, which makes securing crude oil to refine pricier.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; US: California
KEYWORDS: energy; gas; gasoline; oil
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1 posted on 07/29/2016 8:52:37 AM PDT by Lorianne
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To: Lorianne
...its relative isolation from the rest of the country, which makes securing crude oil to refine pricier.

Ignoring the fact that they've got plenty right under their feet.

2 posted on 07/29/2016 8:58:37 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Lorianne

Pay up commies!


3 posted on 07/29/2016 8:58:40 AM PDT by gr8eman (Don't waste your energy trying to understand commies. Use it to defeat them!)
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To: Lorianne
Wholesale California gasoline prices plunge, consumers still pay up

I read that as finished product, ready to be sold. The article seems to verify that. Then a funny thing happens (not!).

Then they start talking about special blends, taxes, and other price driving factors.

Folks, we're talking about the value of already refined product waiting to be sold. It's 60 cents less than it was. It's value has dropped, and yet the pump price has barely changed.

I've address this before. The California driver is getting screwed. This makes me angry.

4 posted on 07/29/2016 9:00:02 AM PDT by DoughtyOne (He wins & we do, our nation does, the world does. It's morning in America again. You are living it!)
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To: Lorianne
its relative isolation from the rest of the country, which makes securing crude oil to refine pricier.

This may be quite true, but it has no bearing on the spread between spot prices of gasoline and the pump price.

5 posted on 07/29/2016 9:00:23 AM PDT by the_Watchman
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To: Lorianne

Liberals want you out of your car!!! Ride their ridiculous little trains to nowhere near your job!


6 posted on 07/29/2016 9:00:30 AM PDT by AngelesCrestHighway
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To: Lorianne

I think there is some lag time before it gets to the pump if you bought expensive stuff and its still in the ground you still got to make your money on it


7 posted on 07/29/2016 9:02:23 AM PDT by al baby (Hi Mom)
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To: Lorianne

five cent drop in retail gas price = ten cent increase in gas taxes


8 posted on 07/29/2016 9:02:28 AM PDT by Buckeye McFrog
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Yeah, and we in Reno get their gas. Despiite the record low oil prices, gas barely got below 3 bucks in most places. Even Fernley 30 miles east is generally 50 cents cheaper. I travel extensively and am sick of seeing most states in the US with gas prices half that of Reno. FU California


9 posted on 07/29/2016 9:03:04 AM PDT by dsrtsage (One half of all people have below average IQ. In the US the number is 54%en)
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To: Lorianne

10 posted on 07/29/2016 9:03:41 AM PDT by Red Badger (Make America AMERICA again!.........................)
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To: Lorianne

BP in Iowa was $1.99 yesterday.


11 posted on 07/29/2016 9:03:55 AM PDT by sarasota
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To: Lorianne

we pay fed gas tax, state gas tax and state sales tax of between 6.75% and 10% depending on which counry you live


12 posted on 07/29/2016 9:05:21 AM PDT by markman46 (engage brain before using keyboard!!!)
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To: Lorianne

crude oil washes up on the shores here.. what a load of patootie.. shortage of available crude to refine my arse..

The boutique mixtures of fuel they mandate make it that much more expensive as refineries adjust their mixes to keep the air “clean”.. as Leo and Moochelle and Obammy & celebs fly jumbo jets all over the globe battling globull varming.


13 posted on 07/29/2016 9:05:30 AM PDT by NormsRevenge (Semper Fi - Monthly Donors Rock!!)
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To: Lorianne

The difference between the three grades of gasoline use to be ten cents - $1.99, $2.09 midgrade and $2.19 for premium.

Now there is anywhere from a $.25 to $.75 difference per gallon.


14 posted on 07/29/2016 9:08:49 AM PDT by Cowgirl of Justice
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To: sarasota

Paid $1.79 in suburbs south of Houston yesterday plus used $.40/gallon in points I had accumulated on my Kroger card. I’ll take $1.39/gallon or even $1.79 with no discounts every day of the week.

Noticed it’s still slightly more in Houston - $2.09/gallon.


15 posted on 07/29/2016 9:16:37 AM PDT by Grams A (The Sun will rise in the East in the morning and God is still on his throne.)
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To: Lorianne

Actually, the price of gasoline has dropped in Sacramento, CA lately. It was US$2.69/US gallon for a while at the local Arco AM/PM Mini Market but it’s now dropped to US$2.29/US gallon lately.


16 posted on 07/29/2016 9:21:39 AM PDT by RayChuang88 (FairTax: America's Economic Cure)
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To: Lorianne
Check out Gasbuddy.com, which displays the cheapest prices in your area - or near any zip you enter.

It works on desktops and on smartphones as well.

One of the few apps I use as it's pretty handy in a new area.

17 posted on 07/29/2016 9:35:29 AM PDT by Oatka (Beware of an old man in a profession where men usually die young.)
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To: Lorianne

Read the full article. There are 63 cents per gallon in taxes and fees on every gallon of gas here in CA. Then, the blithering idiot, Kamala Harris, our state attorney general who is running to fill the US Senate seat of another left wing blithering idiot, Barbara Boxer, is calling for a price fixing investigation. You simply cannot make this stuff up.

Ah yes, and then we have the absurdity in the upcoming November election of one Democrat (Harris) running against another Democrat (Sanchez) to fill Boxer’s seat because CA has an open primary law in which the two top vote getters run in the general election. I urge all Republicans not to refrain from voting in the Senate race. Rather, vote for Sanchez as she is likely to do far less left wing damage than Harris. Remember, vote Sanchez for US Senate.


18 posted on 07/29/2016 9:42:22 AM PDT by CdMGuy
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To: CdMGuy

Thanks CdMGuy. As a new transplant to SoCal, I was anguished over how to vote in this truly “lesser of two evils” contest.


19 posted on 07/29/2016 10:01:31 AM PDT by SW6906 (6 things you can't have too much of: sex, money, firewood, horsepower, guns and ammunition.)
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To: Lorianne
Industry groups, including the West States Petroleum Association, say higher prices are due to state and federal taxes, as well as fees for cap and trade and low carbon fuel standards in California, which can tack on an extra 63 cents a gallon.

The marketplace for the paper RIN credits needed by producers to comply with government mandates on blended biofuels is being gamed by Wall Street.

20 posted on 07/29/2016 10:07:48 AM PDT by mac_truck (aide toi et dieu t'aidera)
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