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Harvey's impact on CA gas prices?

Discussion in 'General Mustang Discussion' started by RagTop, Sep 4, 2017.

  1. RagTop

    RagTop Old Grumpy

    I noticed that my favorite gasoline source (ARCO) had raised the price of premium from $2.89 less than a week ago to $3.03 today. Now we are all aware of the impact of hurricane Harvey on the refining capacity of the lower 47 states, and that oil is generally in a glut inventory situation. The gate is refineries that are down to 75% due to the storm. However, in the past we Californians have been told, when one of our California refineries is down and driving pump prices up, that we cannot draw on fuel from other states because California has a special formulation that is not produced outside of this state. So, since none of our refineries have been impacted by the hurricane, and there are abundant supplies of crude, why are the gasoline prices in California going up? Just askin'.
     
  2. Starfury

    Starfury Active Member

    We still get crude from the southern states, and speculation on future stability of supply drives prices up.
     
  3. Horseplay

    Horseplay Well-Known Member

    A number of states use the special blend BS. Every summer our prices here go up due to the blend only then to go up again in the winter for...wait for it...replacing the special summer blend.
     
  4. RagTop

    RagTop Old Grumpy

    So, one more time, there is a glut of crude oil. It comes from the northern central tier of states and is piped to the Houston area for refining into gasoline that we can't import to CA anyway. We have our own refining capacity here in CA as a result of the stupid "special blend" requirements and it is untouched by the storm. Crude oil prices are fairly stable because of the glut conditions and speculation hasn't driven them up. Wanna try again?
     
  5. Mach1Mark

    Mach1Mark Ramrod extraordinaire Donator

    Here in SC we DO get our fuel from the Houston refineries. Gas prices here has spiked 0.40 in a week and wont be going down for a couple of months. And you know they will creep down slowly . . . :-/
     
  6. RagTop

    RagTop Old Grumpy

    Yeah, you know what they say about gas prices. Up like a skyrocket and down like a feather. What a perfect excuse for raising prices regardless of the impact of the storm. The news this morning is that they didn't sustain nearly the damage to the refineries that they had expected. Well, maybe Irma will finish the job.
     
  7. 6t6red

    6t6red Well-Known Member

    Gas has gone up 53 cents here in northern ohio.
     
  8. guruatbol

    guruatbol Always on vacation!

    Between the taxes and the price gouging, I paid .60 more there Saturday than in Utah.

    Sent from my XT1030 using Tapatalk
     
  9. 3175375

    3175375 Well-Known Member

    Kalifornia is dumb. The number of refineries in the state has shrunk from over 30 to 11 in the last 25 years. And the Kalifornians keep electing liberal idiots like Jerry Brown, Nancy Pelosi, Maxine Waters n others. Makes me puke. I am taking my pension and getting the hell out of this state
     
    Mach1 Driver likes this.
  10. RagTop

    RagTop Old Grumpy

    Hard to deny. More to the point, Californians are dumb. We are becoming the classic example of a failing socialist democratic government. Legislating expenditures of public funds while driving business out of the community. We keep electing the above and compound it with a couple of senators that are hard leftists (well, maybe Diane Feinstein is just in it for the bucks, but Kamala Harris???), and we keep raising taxes to "protect the children". From whom?
     
  11. Mach1Mark

    Mach1Mark Ramrod extraordinaire Donator

    As far as I am aware, the refineries in NW Washington state and probably Kalifornia get crude from Alaska. I am told some crude for western refineries comes from Wyoming and other Midwest states. I would very surprised if any crude comes from Gulf sources.
     
  12. RagTop

    RagTop Old Grumpy

    Yep. And the cost of gasoline here in CA keeps climbing as a result of what? Because they can get away with it. The price of premium here in Lincoln, CA at the local ARCO is now $3.11, up from $2.89 a week and a half ago. Since I don't think that we have been rammed with Fra. Jerry's gasoline tax to repair the roads yet (which is what the existing gasoline tax was supposed to be for) I think this is just the gas refiners grabbing a little off the top. I'm not opposed to profit, but I am opposed to taking advantage of a situation and draining people's wallets for no demonstrable reason beyond corporate greed. If there's an operating cost reason that drives these price increases, I'd like to hear it.
     
  13. JeffTepper

    JeffTepper Well-Known Member

    "If there's an operating cost reason that drives these price increases, I'd like to hear it."

    Ken, consider this:

    From a theoretical standpoint, a corporation exists to generate profits for its shareholders. Acting in an opportunistic manner is entirely consistent with that purpose.

    In practice, corporate "conscience", being a good corporate neighbor, and the public relations aspect of a business' image in the market place has softened the harsh message above.

    Back when OPEC called the shots in the mid 1970's, I used to think that every time a camel farts in the desert, crude oil prices went up. Now that the US appears to be less dependent upon crude from the Middle East, camels have less to do with it! Your theory about average intelligence here in the Golden State has some merit. I suggest that it is not limited to California.

    What's left? How about Oil Executive Bonus Pay? Just sayin'
     
  14. RagTop

    RagTop Old Grumpy

    Jeff: Regardless of the constraints of corporate morality, there doesn't seem to be a single supportable reason for gasoline prices in CA to go up as a result of the Texas and Florida hurricanes. Crude oil is a fungible good, but the prices of crude have been unaffected by the storms. Whatever damage there was to the gasoline supply is as a result of diminished refining capacity in the other 49 contiguous states. Since we can never get assistance from these states when CA has a production capacity problem because of our unique fuel formulations, the refining capacity of the other 49 states should have zero impact on California gas prices. Yet, they continue to rise. Just sayin' that the oil companies here in the "Golden State" have no demonstrable reason to raise prices, unless they are contributing the windfall profits to the recovery efforts of course.:rolleyes:
     
  15. janschutz

    janschutz Corn Hauler

    In Allen, tx, the prices have drooped 14 cents this week. Now at $2.569
     
  16. JeffTepper

    JeffTepper Well-Known Member

    Ken:
    By process of elimination, either the oil companies are conspiring to manipulate the retail price using the hurricanes as an excuse or, the camels in the desert are still farting ! :rolleyes:

    All kidding aside, I recall reading some time ago that gasoline is a strategic commodity. If that is true, why are oil companies, commodities traders, and stock brokers permitted to manipulate the price of that commodity?

    Historically now is the time some congressman is going to grandstand once again convening a congressional committee to "investigate" the rise in gas prices so he/she can conclude that big oil has once again done nothing wrong? The question that should be asked out loud is "How gullible are the American people?"
     
  17. RagTop

    RagTop Old Grumpy

    Not here in Lincoln, CA though. Must have been the impact of Harvey, huh? Allen is near Dallas, right? I did notice that the step function between gasoline grades has changed from an even $.10 per gallon per grade to an additional $.17 for mid grade and then an additional $.14 for premium. That's $.31 per gallon for us premium users. Serves us right. Goddam environmental criminals. So, were they not making money back when it was a $.10 step?
     
  18. janschutz

    janschutz Corn Hauler

    Allen is just North of Dallas. Noticed at lunch, the gas was down to $2.52. It went up by multiples of 10 cents and is going down in just cents.
     
  19. 3175375

    3175375 Well-Known Member

    Ethics
     
  20. Horseplay

    Horseplay Well-Known Member

    Used to be 10 cents a grade difference. Now around here its 20-25 cents up to mid and then 30 from mid to premium. That's 55 cents more for premium total...sometimes up to even 20 cents more depending on when and where. Ive been nearly coast to coast the last couple weeks and everywhere in between and I didn't see anywhere with spreads like that except here in lovely IL. Guess the recent hike in income tax wasn't enough.
     

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