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What the hell is happening with fuel prices in Calif?

liquid addiction

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Almost $6 in northern NV also. Why does it seem like every year when they switch from Summer to winter and winter to summer they cost more than the other? Don't seem to matter which way they are switching.
 

CLdrinker

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Paid $6 this morning got a bit over half a tank for $150
 

farmo83

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Sounds like you have some solid insight. Can you shed a little more insight on the last sentence here? Trying to understand what this means.

Sure as has been mentioned most refiners try to schedule refinery maintenance during the spring time. It's the slowest travel season, summer is the peak so we want to be able to run max capacity then to maximize revenue. This year due to Ukraine conflict and record high margins most all players delayed turnaround to run through the spring and summer. This was viewed in industry as a win-win, we made money and did the best we could to keep prices down. Winter is fairly slow so most companies are bringing down units for maintenance.

While the news kept going on about Russian crude bans and lack there of the main issue earlier this year was lack of Russian refined products. Russia is the 2nd biggest exporter of Refined Products in the world and you simply cannot make up that amount of lost supply. Even if we had all the extra crude needed in the world we don't have the capacity to refine it into gasoline. Gasoline and Crude each have there own supply/demand dymanics at play.

The main reason gasoline in California is really high is CARBOB and lack of infrastructure. For background all refineries produce "base grade" fuel and it's then blended up to the local area's specifications. 49 of the 50 states use either CBOB or RBOB. California requires it's own "base grade" that's way more expensive to refine. As no one else in the world uses CARBOB it's only refined in California. So when refineries in California go into turn around as opposed to the rest of the country who just imports additional supply, California is subject to supply and demand and prices increase.

Lastly lack of infrastructure. I don't think it's a shock to anyone that building or even maintaining energy based assets in California is not profitable, as such everyone tries not to invest there. As such everything, rigs, pipelines, etc, is old and breaks all the time. If a pipeline feeding one of our refineries on the coast is taken down it's usually cheaper to get crude from Saudi Arabia on a ship then it is to truck in what we need. Cheaper is a relative term as it's still expensive as crap.
 

King295

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Sure as has been mentioned most refiners try to schedule refinery maintenance during the spring time. It's the slowest travel season, summer is the peak so we want to be able to run max capacity then to maximize revenue. This year due to Ukraine conflict and record high margins most all players delayed turnaround to run through the spring and summer. This was viewed in industry as a win-win, we made money and did the best we could to keep prices down. Winter is fairly slow so most companies are bringing down units for maintenance.

While the news kept going on about Russian crude bans and lack there of the main issue earlier this year was lack of Russian refined products. Russia is the 2nd biggest exporter of Refined Products in the world and you simply cannot make up that amount of lost supply. Even if we had all the extra crude needed in the world we don't have the capacity to refine it into gasoline. Gasoline and Crude each have there own supply/demand dymanics at play.

The main reason gasoline in California is really high is CARBOB and lack of infrastructure. For background all refineries produce "base grade" fuel and it's then blended up to the local area's specifications. 49 of the 50 states use either CBOB or RBOB. California requires it's own "base grade" that's way more expensive to refine. As no one else in the world uses CARBOB it's only refined in California. So when refineries in California go into turn around as opposed to the rest of the country who just imports additional supply, California is subject to supply and demand and prices increase.

Lastly lack of infrastructure. I don't think it's a shock to anyone that building or even maintaining energy based assets in California is not profitable, as such everyone tries not to invest there. As such everything, rigs, pipelines, etc, is old and breaks all the time. If a pipeline feeding one of our refineries on the coast is taken down it's usually cheaper to get crude from Saudi Arabia on a ship then it is to truck in what we need. Cheaper is a relative term as it's still expensive as crap.
Great info here, thanks for shedding some light. It never ceases to me amaze me in regards to the corner California has put itself in at times and can't get out of its own way.
 

NicPaus

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I drove to Parker to fill up. Only $4.25

Spent $275 yesterday in CA. $5.99 same station was $5.09 the week before.
 

Mandelon

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There is a Vons Market not too far away that has a gas station. If you are part of the VONS club you get discounts on food and gas savings.

I entered our phone number and got 30 cents off per gallon. Imagine my "joy" at paying only $ 5.89 a gallon!
 

COCA COLA COWBOY

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It's weird because Diesel hasn't moved much. I just paid $5.84 in San Diego which I have been paying for a month.
 

boatpi

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Vegas gets 90% is it’s fuel from underground pipe lines that begin in Wilmington. A little known fact is California taxes every barrel that comes out it’s not much but it’s a little.
Gas and diesel in Southern Nevada is about a dollar to about $1.25 miles per gallon than Southern California. Today regular at $4.55 diesel $4.88 at discount stations.
 

530RL

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Sure as has been mentioned most refiners try to schedule refinery maintenance during the spring time. It's the slowest travel season, summer is the peak so we want to be able to run max capacity then to maximize revenue. This year due to Ukraine conflict and record high margins most all players delayed turnaround to run through the spring and summer. This was viewed in industry as a win-win, we made money and did the best we could to keep prices down. Winter is fairly slow so most companies are bringing down units for maintenance.

While the news kept going on about Russian crude bans and lack there of the main issue earlier this year was lack of Russian refined products. Russia is the 2nd biggest exporter of Refined Products in the world and you simply cannot make up that amount of lost supply. Even if we had all the extra crude needed in the world we don't have the capacity to refine it into gasoline. Gasoline and Crude each have there own supply/demand dymanics at play.

The main reason gasoline in California is really high is CARBOB and lack of infrastructure. For background all refineries produce "base grade" fuel and it's then blended up to the local area's specifications. 49 of the 50 states use either CBOB or RBOB. California requires it's own "base grade" that's way more expensive to refine. As no one else in the world uses CARBOB it's only refined in California. So when refineries in California go into turn around as opposed to the rest of the country who just imports additional supply, California is subject to supply and demand and prices increase.

Lastly lack of infrastructure. I don't think it's a shock to anyone that building or even maintaining energy based assets in California is not profitable, as such everyone tries not to invest there. As such everything, rigs, pipelines, etc, is old and breaks all the time. If a pipeline feeding one of our refineries on the coast is taken down it's usually cheaper to get crude from Saudi Arabia on a ship then it is to truck in what we need. Cheaper is a relative term as it's still expensive as crap.
All great points.

There will not be another major refinery built in America again. The last 200,000 BPD facility was opened in 77. US refining capacity is lower today than in 1980 yet we have 110 million more people.
 

Yldboyz

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grgrg.PNG
 

JBZ

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I payed 6.25 today

Yesterday it was 5.39

In Santa Ana

I drove by yesterday and said you should stop by tomorrow and get GAS
WTF
 

Ace in the Hole

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It's weird because Diesel hasn't moved much. I just paid $5.84 in San Diego which I have been paying for a month.
Diesel has stayed steady at $4.99 in Cave Creek, AZ. Gasoline jumped 80 cents to $4.89 this week. If gas is still $4.19 or so in havasu I'm going to drag the boat out tonight when I get there and go fill it...rand the damn thing nearly out at the regatta 🤣🤣🤣

With as bad as florida got hit, they are going to gouge us for a while on gas. #FJB
 

DLC

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Winter blend is after Halloween!

Just before the election….. I think there is a theme to all this madness

FJB!
ACECDB1A-A8E7-4B01-BC3F-6041F33E917E.jpeg
 

Xtrmwakeboarder

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Is it just me, or does this seem like the cycle?

Gas prices increase>Winter blend is more expensive than summer blend

Gas prices increase>Summer blend is more expensive than winter blend

Gas prices increase> Winter blend is more expensive than summer blend
 

Hypnautic

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I no longer get upset at gas prices. I no longer pay attention to them.
No I did not go EV either. Hell my most economical car is a Supercharged V6.

Just started having my kids fill up the cars--have not seen the gas pumps in close to 3 months.
Yes--I pay the CC bills, but half the time I never check the purchases anyway.

Just like the news--if you dont watch, you dont really know. Ignorance is bliss sometimes.
 

CLdrinker

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Is it just me, or does this seem like the cycle?

Gas prices increase>Winter blend is more expensive than summer blend

Gas prices increase>Summer blend is more expensive than winter blend

Gas prices increase> Winter blend is more expensive than summer blend

You forgot. Obama became President fuel prices went up
Biden became President fuel Prices went up.

Both Democrats. Yet people love to vote for them.
Fucking idiot.
 

74 spectra20 v-drive

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I dint go thru all the posts but is this not due to the government using our emergency petroleum reserves to flood the supply which was the reason for the decrease that every freaking news station was hot and bothered by, forget that its still twice what we were paying two years ago its gone down a penny every day for 60 days "all Hale the Dems" now guess what, a freaking monster storm in the south east and we need these reserves.... oh shit this storm came 4 weeks to early and fouled up the election sound bites. by the way millions of barrels of our reserves were sent to china and we are at the lowest levels in the reserves since the early 80's This is what I have read, if anyone knows more let us know or maybe I should read all the posts.

Also, The president stands in front of the nation and talks down to everyone who isn't on board with destroying this country thru the green new deal and he is still saying they never shut anything down surrounding production and have even opened more leases, as the congress is trying to pass law to keep banks from working with petroleum companies, its the ultimate 3 card monte with all of us acting like the pee under the cup.

There is some good video of this piece of crap Michigan Democrat Rep. Rashida Tlaib asking the CEO 's of the nations largest banks if they have a policy against funding new oil and gas products.

Oh ya we opened a bunch of new leases but no one is drilling on them... they are unexplored and will cost millions to get anything going and they are trying to keep any money from being available. this is absolutely insane and 99% of the general public has no freaking clue and thinks that the gas station owners are the reasons for the gas prices. This is absolute criminal behavior. Most of the banks told this piece of crap that they were not defunding their petroleum partners, the Chase CEO basically called her an idiot. He states halting new sales of oil and gas would be the 'road to hell for America'. I think that where she wants us, just like the shit hole she came from, i dont freaking understand these people!!!!!!!

We all have a job and that is to get every family member and friend you have to vote the bastards the hell out.
 

coolchange

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Headed to the river early AM. $143.00. To fill the wife’s Sierra. Fuck me.
 

Ace in the Hole

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Beautiful area, we were there June 2021, @Ace in the Hole lives there
Lived there right at 3 years. great city, lots to do, tons of good people and great music. We relocated to Cave Creek AZ a few months back. Another great town.

87 was $4.89 in cave creek today, diesel was 4.99. Rolled into Havasu and saw gas at $4.19, when I get up in the AM I'm going to fill the boat before it jumps hopefully.

@Bob65olds We lived right by the Hoity Toit in a historic remodel. Loved my neighborhood. Billy's was a great place for live music, Creed Fisher (google him) is over there a lot, and they have some great talent that passes through. If you ever stop in Ask for Farmer and tell him Joel from HI sent you.
 
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DLC

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im really surprised when you bring this up at family gatherings you get dismissed…..

Really hard to believe that just a few years ago fuel / gas at under $3 gallon! Funny how mean tweets cost the average person Hundreds of $$$ wasted a month! All for a Green agenda that is Forced Down on us….

Electric Prices are going TO JUMP and make Gas look really cheap in the next 5-7 years….

Ive heard that 22 million people are behind on their electric bills, that means WE will all pay more to cover these costs for these people!

Dont believe me…. Try evicting a family for not paying rent! OR raise their rent

crazy times we currently live in



I dint go thru all the posts but is this not due to the government using our emergency petroleum reserves to flood the supply which was the reason for the decrease that every freaking news station was hot and bothered by, forget that its still twice what we were paying two years ago its gone down a penny every day for 60 days "all Hale the Dems" now guess what, a freaking monster storm in the south east and we need these reserves.... oh shit this storm came 4 weeks to early and fouled up the election sound bites. by the way millions of barrels of our reserves were sent to china and we are at the lowest levels in the reserves since the early 80's This is what I have read, if anyone knows more let us know or maybe I should read all the posts.


Also, The president stands in front of the nation and talks down to everyone who isn't on board with destroying this country thru the green new deal and he is still saying they never shut anything down surrounding production and have even opened more leases, as the congress is trying to pass law to keep banks from working with petroleum companies, its the ultimate 3 card monte with all of us acting like the pee under the cup.

There is some good video of this piece of crap Michigan Democrat Rep. Rashida Tlaib asking the CEO 's of the nations largest banks if they have a policy against funding new oil and gas products.

Oh ya we opened a bunch of new leases but no one is drilling on them... they are unexplored and will cost millions to get anything going and they are trying to keep any money from being available. this is absolutely insane and 99% of the general public has no freaking clue and thinks that the gas station owners are the reasons for the gas prices. This is absolute criminal behavior. Most of the banks told this piece of crap that they were not defunding their petroleum partners, the Chase CEO basically called her an idiot. He states halting new sales of oil and gas would be the 'road to hell for America'. I think that where she wants us, just like the shit hole she came from, i dont freaking understand these people!!!!!!!

We all have a job and that is to get every family member and friend you have to vote the bastards the hell out.
 

ChiliPepperGarage

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Waiting for our resident "conservative" to tell us all how this is Trump's fault.

I'm headed to Michigan on Monday to get my boat. Will be interesting to see what prices are like as I go east. I'll post up when I get back.
 

jet496

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Just got back from Loveland, Co and was $3.50 but around $7.00 here in San Diego. I don't think the libbies in CA will be able to afford living here much longer yet they will continue to support Newsome and the agenda.
 

Singleton

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Just got back from Loveland, Co and was $3.50 but around $7.00 here in San Diego. I don't think the libbies in CA will be able to afford living here much longer yet they will continue to support Newsome and the agenda.

You forget everyone gets the $400 gas check this month (up to 2 cars per household).
Instead of doing a gas tax vacation (republicans wanted this), the CA Dems passed a rebate back to all owners of registered vehicles (400 per car, up to 2 cars per household). And it is for ALL vehicle types, not just gas powered.
 

Chili Palmer

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Now California’s governor Dippity Doo wants to tax the oil companies for making excessive profits, and we all know that tax will again be passed back onto the consumer in higher fuel prices at the pump. This guy just doesn’t get it.
 

Singleton

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Now California’s governor Dippity Doo wants to tax the oil companies for making excessive profits, and we all know that tax will again be passed back onto the consumer in higher fuel prices at the pump. This guy just doesn’t get it.
This will cause the remaining oil companies (Chevron, etc.) to relocate to another state.
 

farmo83

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All great points.

There will not be another major refinery built in America again. The last 200,000 BPD facility was opened in 77. US refining capacity is lower today than in 1980 yet we have 110 million more people.
Refining outlook in the US is projected to basically hold flat until 2030 and then start to taper down. No one wants to spend any money on refining. Phillips 66 refinery in South Louisiana got pummeled during hurricane Laura and they idled it. It's now just a tank farm. I believe another refinery in the north east was recently shut down too.
 
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