Gas prices climb an average 17 cents in California, with some stations charging more than $5 a gallon and others closing for lack of fuel. One silver lining for motorists: California gas prices should start falling next week.
While the price hikes are caused by temporary supply problems, they could continue for a few more days, experts suggest. Already, some gas stations are charging more than $5 per gallon and others are closing for lack of fuel.
The economics just aren't worth it. As Patrick DeHaan of GasPriceBuddy.com pointed out Thursday, an 8,000-gallon buy of gasoline that cost $25,840 a week ago, now cost $33,840 (before taxes). Those that do stay open have to keep jacking up the price to cover their costs.
While the national average is at a seasonal record – $3.79 a gallon – Californians on Friday were paying $4.49, according to The AAA Daily Fuel Gauge report.
The high gas prices are caused by a series of problems: a refinery fire, a pipeline shutdown, and a scheduled switchover from a special summer blend to regular blend of gasoline at the end of the month.
The price surge shouldn't last too much longer. Wholesale prices are heading down already. Within a few days, retail prices should start falling as well, but not before gas prices challenge the state record $4.61 set in 2008.
"There's light at the end of the tunnel," writes Mr. DeHaan of GasBuddy.com, a group of local websites that track gasoline prices. "It won't come as fast as I, or anyone else wants it. But it is coming."