Tue Oct 9, 2012, 07:44 AM
TomClash (11,344 posts)
California gasoline prices set to plunge as spike ends
By Braden Reddall and Erwin Seba
SAN FRANCISCO/HOUSTON | Mon Oct 8, 2012 8:49pm EDT
(Reuters) - The unprecedented price spike that added more than 50 cents a gallon to California pump prices last week ended as quickly as it began, market analysts said, and consumers should see prices fall dramatically in the coming week.
Political outrage, however, was still heating up as Senator Barbara Boxer joined calls for a federal investigation into possible market manipulation.
Prices started pulling back slightly on Monday afternoon, according to online filling station tracker Gas Buddy, after the American Automobile Association website reported they had hit a record of $4.668 per gallon on Monday morning.
California Governor Jerry Brown's decision on Sunday to allow an immediate switch to "winter-blend" fuel was a big factor in driving wholesale prices down by 60 cents a gallon on Monday, market participants said.
"Retail prices will come down as hard as they went up," said David Hackett, president of Stillwater Associates, an energy consultancy in Irvine, California. "It went up 56 cents in a week, it will come down that fast."
Read more: http://www.reuters.com/article/2012/10/09/us-california-gasoline-price-idUSBRE8970SS20121009
17 replies, 3552 views
California gasoline prices set to plunge as spike ends (Original post)
|Richard D||Oct 2012||#7|
|Duer 157099||Oct 2012||#15|
Response to TomClash (Original post)
Tue Oct 9, 2012, 09:45 AM
SamKnause (6,942 posts)
5. Gasoline prices.
I am a bit confused.
Is this out of the ordinary for California ?
This happens in Ohio very frequently.
We have spikes of 30 or 40 cents all the time.
Response to SamKnause (Reply #5)
Tue Oct 9, 2012, 10:35 AM
JDPriestly (57,936 posts)
8. It's either chicanery or incompetence by the private sector.
They claim refinery fires and incidents.
We hear so much moaning and groaning about the incompetence of government, about how it is too big, about how we have too much of it.
But where do most of the horrible mistakes get made -- in the private sector.
If the government ran refineries so sloppily that they caught on fire or broke down over and over, we would hear a lot of screaming from the media.
But since this incompetence is in the private sector, you could hear a pin drop. Hardly a sound until prices rise.
This is why we need big government -- because our private sector is so untrustworthy and careless.
The question remains whether the refinery failure story was exaggerated -- or true at all. Because the day after our governor took some action that would cut into the profits of the California refineries, the day after Senators Feinstein and Boxer started talking about a congressional investigation, miracle of miracles, prices are set to go down.
California was the victim of the Enron scam. We will not allow the private sector to manipulate and use and cheat us again. The people who manage the private sector are citizens in a democracy just like everyone else. In the end, they have to act responsibly and answer to the needs of the community.
The availability and cost of energy including fuel, oil and gas affects our national security. My e-mails don't. Our government does not need to regulate or check my e-mails. Our government needs to check the safety and efficiency of our energy industry including our refineries.
Response to TomClash (Original post)
Tue Oct 9, 2012, 09:57 AM
MindPilot (12,181 posts)
6. May be time for a class-action suit
Twice a year when it is time for the seasonal formulation changes, the refiners all act like it is some big surprise. "Oh noes! A seasonal formulation change? We had no idea THAT was going to happen! And just when we shut half our capacity down for maintenance at one plant and set another one on fire! Oh well, guess we just have to jack up the prices. Drat!
Like clockwork, they use the formulation change regulation to manipulate the market, spike the prices and line their pockets. It is profiteering at its worst.
ETA: Very similar to how the power company always seems caught off-guard by people needing more electricity when the thermometer heads for triple digits.