GOODER AND HARDER, CA: Why gas prices in California ‘have gone ballistic.’
Gas prices have been on the rise nationwide, but for California drivers, they’ve skyrocketed in a short amount of time.
The Golden State’s average at the pump surged by $0.23 to $5.27 per gallon on Friday from a week ago, according to AAA data. Meanwhile, the nationwide average sat at $3.54 per gallon on Friday, up $0.04 during the same period.
Tom Kloza, global head of energy analysis at OPIS, points to refinery challenges as the main culprit for California’s surging prices, including an important Phillips 66 refiner in the Bay Area halting gasoline production in favor of renewable diesel.
“Throw in regularly scheduled maintenance that will occur at two critical refineries in May and the normal penchant for speculative buying in global markets in the second quarter, and you have wholesale prices that have gone ballistic,” he said.
Kloza calculates gasoline in San Francisco, less taxes and other costs, is at a premium of almost $60 per barrel more than current crude levels.
On Friday West Texas Intermediate (CL=F) futures topped $86 per barrel while Brent (BZ=F), the international benchmark price, settled above $91 per barrel.
Flashback: Aren’t California’s High Gas Prices What The Left Have Wanted?
It’s as if “Elitist environmentalists hate the working class” or something.