Even cartoon characters might be pissed about this latest price surge
  • Even cartoon characters might be pissed about this latest price surge
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After weeks of lowering gas prices, on July 9 at 2:00 p.m., the gas-price website gasbuddy.com sent its San Diego subscribers a text alert: “Gas prices expected to rise 15–30 cents. Fill up now.”

By the time the alert had been issued, gas prices at the Cardiff-by-the-Sea Chevron and Valero stations, on Birmingham Drive at I-5, had already shot up 20 cents a gallon from the posted price the day before.

The price spike is apparently caused by a report released on July 8 by the federal Energy Information Administration. “West Coast gasoline inventory declined by over 1 million barrels (42 million gallons) and at the same time, fuel imports into the region fell to zero for the first time since March,” the report stated.

Shortly after the release of the government's report, wholesale prices for the Los Angeles area went crazy. Gasbuddy.com reported, “Over the next 24-48 hours we would not be surprised to see average retail prices in Southern California climb by 10-cents.

At the same time as the gasbuddy alert, the Sacramento Bee reported on its website, “Analysts say they were caught off guard by the spike and do not know how long it will last. Southern California motorists could see a 50 cent surge in a week’s time.”

Statewide, the average price for cash-paid regular gas rose by 3.4 cents in the 24-hour period since the report’s release.

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Comments

CDTB July 10, 2015 @ 1:10 p.m.

Your use of Gasbuddy.com may not be the most reliable. Barchart.com shows that wholesale gas prices will drop from $2.04 now to $2.02 in August, $1.93 in September, $1.72 in October and $1.65 in November. That's a 20% drop in the next four months.

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Ken Harrison July 10, 2015 @ 3:07 p.m.

Exactly correct, the wholesale prices was stable or dropping, a barrel of oil is stable or dropping, no one can explain why with a simple report release, of information known to all the oil companies for months, that Calif.'s refiners stored gas inventory has been reduced over the last few months, wholesalers went nut-so 48 hours ago, especially Chevron and Shell. I saw a lot of $4.00+ gas today as I was driving around using up my $3.50/gal gas.

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CDTB July 10, 2015 @ 6 p.m.

It could also be that our local RETAILERS are taking advantage of the inventory news. Wholesalers are not without some fault, but I believe our local retailers are just as apt to price-set when they know we are all expecting it.

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markavelli a July 10, 2015 @ 8:08 p.m.

A shame if that is true. We do have Anti-trust laws which prohibit this conduct, unfortunately this is impossible to enforce now days....

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Ken Harrison July 10, 2015 @ 3 p.m.

The Chevron near me went up another 50 cents/gal last night, since filling this report.

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AlexClarke July 11, 2015 @ 7:11 a.m.

Chevron has the highest prices - always. They work on the principle that some people think that Chevron gas is somehow superior to other brands. All brands of gas come out of the "Tank Farm" in Mission Valley.

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Visduh July 10, 2015 @ 4:27 p.m.

It looks as if the price everywhere for 87-octane will be up over $4 a gallon within a day or two. I can't help but wonder if there's any connection with the recent charges of collusion between the refiners. Oh, there have been investigations over the years and nothing was ever proved. The structure of the California motor fuels market could not have been better designed to keep prices high and profit margins far higher than in the rest of the US. The current group of refiners can game the system all the time, to the detriment of the California motorist, and need not engage in any covert conspiracy. It is almost as if the oil companies are saying, "Collusion? Collusion? You think we collude? Well, we will show you collusion, and nobody will ever prove a thing!"

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markavelli a July 10, 2015 @ 8:03 p.m.

Our refineries were put under the cap and trade scam in January. Its a giant tax on them. Pretty sure this is all it is. You mess with the horns and you get the bull. Basic, common knowledge, common sense, wisdom...whatever you want to call it but most people "called it" 9 years ago when SB32 was voted into law. Its time to listen to anyone but a liberal democrat. They are not interested in anything but their many agendas, which does not include making life less expensive for us.

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AlexClarke July 11, 2015 @ 7:16 a.m.

It is all BS, MS, Phd - Bull Shift, More Shift, Piled higher and deeper. Somewhere there is a dart board that all gas companies use. Wherever the dart sticks they use that excuse for raising prices. The dart can land in: Middle East, OPEC, Refinery maintenance, Refinery fire, refinery strike, low inventory, government regulation, summer blend switchover, winter blend switchover. BS, MS, Phd.

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Ken Harrison July 13, 2015 @ 4:20 p.m.

As of 7/13 @ 4:00 p.m., the 76 in Coronado is now the 5th highest priced station in California. The highest? The station in Avalon on Catalina Island @ $7.04/gal.

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