On Tuesday, Oct. 9, California gas prices soared to a record $4.671 per gallon, while some gas stations reached higher than $5 per gallon. Gas prices throughout the state had been on a continual rise the past week, reaching a spike on Tuesday, and then settling back down to $4.66 a gallon. Although many had expected a more significant drop after the record setting price increases, the decline had been very minimal after the rise in wholesale prices.
The rise in prices was largely due to refinery disruptions after a power outage at an Exxon refinery, one of California’s largest refinery stations. The impact of one of Chevron’s key refineries, after being shut down in August, has also contributed to the seemingly long term oil crisis. The sudden rise in oil prices and limited product supplies forced many gas stations within California to shut down after running out of supplies.
Fortunately, Governor Jerry Brown allowed refiners to process the less expensive winter fuel in order to ease down gas prices and keep stable amounts of supplies within gas stations. However, many critics are questioning the governor’s slow decisions on crucially decisive issues.
The continual rise in gas prices have also created controversial suspicions, while calls from California senators Dianne Feinstein, Barbara Boxer, and Juan Vargas have been made to the Federal Trade Commission as well as the Department of Justice, asking for a federal investigation involving manipulations in gas prices by trading markets.
Many independent gas owners have also been put in strain due to the lack of oil in California. In fact, many have resorted to closing down their stations due to being unable to afford the incredibly high prices, or simply due to the inability to obtain gasoline.
Although industry analysts reassure that the issue is short term and gas prices will drop after maintenance of refinery issues, California residents remain skeptical. Sam Larkin, 43, a resident in Los Angeles, states, “I won’t believe they’re (prices) going down until I see it.” Richard Benes, another resident of Los Angeles, adds, “Prices just jumped… but we can’t expect them to go back down just as quickly.”
