Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down(?)

[Trajan]

I passed by a Chevron near my home today, $4.69, for Regular....


"The squeeze is on, and people are doing desperate things," is how one independent described the situation in California. As Bloomberg reports, a shortage of supply along with drastically higher wholesale prices of gasoline has caused 'mom-and-pop' gas stations to close down as their margins are destroyed. Even larger firms, such as CostCo, are closing sites due to the shortages as Los Angeles and San Francisco gas prices jump 30-45c in a few days.

As one owner noted: "I can get gas, but it’s going to cost me $4.90 a gallon, and I can’t sell it here for $5," and another added that "we’re going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. There’s no sense in staying open. The profit margins are so low it’s not worth it."

The problem is likely a short-term one according to some as the temporary shutdown of local refineries (after Chevron's Richmond refinery fire) and maintenance is completed but it is clear that even a short-term blip in wholesale prices (whether driven by local supply or global geopolitics) causes pain as it would appear we are close to 'inelastic' levels of demand.

more at-
Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down: Hoarding Next? | ZeroHedge

 

[nitroz]

Jeez, thats really alot. And not to mention about how the quality of gas is much lower over there.

 

[ScienceRocks]

Obama is sounding more like Carter II.

 

[Katzndogz]

After passing two closed stations yesterday, I finally got gas at $4.79 a gallon. The attendant said that when he's empty he will have to close too. He can't afford to buy gas from the wholesaler. California is changing over to the winter blend. So many refineries have closed that there aren't enough refineries to make the full requirement of the blend.

 

[uscitizen]

More jobs were created under Carter than under Bush.

 

[Soggy in NOLA]

It's all Bush's fault. Really.

 

[Katzndogz]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

 

[Mad Scientist]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

Got guns and ammo? I do!

 

[Katzndogz]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

Got guns and ammo? I do!

So do I.

Another unintended consequence. Today is trash day at my complex. This is a BIG complex. We usually have three trucks to empty all the dumpsters. Today there was only one. I asked the operator where everyone was. The company had to cut back on the trucks it sends out. When this one is full, that's it.

There was a fire at a refinery in August that took it off line. One other refinery closed during a power outage. The EPA is refusing to issue the permits that would allow these two refineries to come back on line which is only adding to our woes.

 

[The Infidel]

More jobs were created under Carter than under Bush.

Wrong election... nobody cares about Boooosh

 

[The Infidel]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

Got guns and ammo? I do!

So do I.

Another unintended consequence. Today is trash day at my complex. This is a BIG complex. We usually have three trucks to empty all the dumpsters. Today there was only one. I asked the operator where everyone was. The company had to cut back on the trucks it sends out. When this one is full, that's it.

There was a fire at a refinery in August that took it off line. One other refinery closed during a power outage. The EPA is refusing to issue the permits that would allow these two refineries to come back on line which is only adding to our woes.

The EPA just cares about us ya know.....

If it were not for them, we'd have dirty air and dirty water.


Damn them... I want my dirty air and dirty water!!

 

[High_Gravity]

I passed by a Chevron near my home today, $4.69, for Regular....


"The squeeze is on, and people are doing desperate things," is how one independent described the situation in California. As Bloomberg reports, a shortage of supply along with drastically higher wholesale prices of gasoline has caused 'mom-and-pop' gas stations to close down as their margins are destroyed. Even larger firms, such as CostCo, are closing sites due to the shortages as Los Angeles and San Francisco gas prices jump 30-45c in a few days.

As one owner noted: "I can get gas, but it’s going to cost me $4.90 a gallon, and I can’t sell it here for $5," and another added that "we’re going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. There’s no sense in staying open. The profit margins are so low it’s not worth it."

The problem is likely a short-term one according to some as the temporary shutdown of local refineries (after Chevron's Richmond refinery fire) and maintenance is completed but it is clear that even a short-term blip in wholesale prices (whether driven by local supply or global geopolitics) causes pain as it would appear we are close to 'inelastic' levels of demand.

more at-
Wholesale Gasoline Shortage In California Causes Gas Stations To Shut Down: Hoarding Next? | ZeroHedge

$4.69? $4.90? for your sake I hope you make alot of money that shit is insane, I'd be down to a skateboard if they tried to charge that isht down here.

 

[High_Gravity]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

Yikes, sounds like we are headed towards being Zimbabwe part 2.

 

[Katzndogz]

Meanwhile, as gas stations close and companies can no longer afford to stay in business, obama says the UE rate dropped to 7.8.

No it doesn't make sense. And most people will know that.

 

[RGR]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

oh yes, companies will choose to stop trucking their products to stores and declare bankruptcy the next afternoon rather than raise their prices to cover the increased production/distribution costs. Makes perfect sense to those who have never run a business, taken an economics course, held a job, or been paid allowance by your parents after the age of 10.

Too bad these shortages aren't caused by peak oil, then we could get "Dumber than a stump" Jiggsy back in the game...peak oilers have been loath to show their faces after yet another claim has gone by the wayside.

 

[RGR]

$4.69? $4.90? for your sake I hope you make alot of money that shit is insane, I'd be down to a skateboard if they tried to charge that isht down here.

No reason to give up happy motoring when the alternatives are so much better than skateboards.

 

[The Infidel]

[ame=http://www.youtube.com/watch?v=5M1WlV7vafk]Obama Wanted High Gas Prices...Gradually (2008 Election Campaign) - YouTube[/ame]

 

[The Infidel]

$4.69? $4.90? for your sake I hope you make alot of money that shit is insane, I'd be down to a skateboard if they tried to charge that isht down here.

No reason to give up happy motoring when the alternatives are so much better than skateboards.

Way too pricey for poor white folks

 

[Katzndogz]

Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.

oh yes, companies will choose to stop trucking their products to stores and declare bankruptcy the next afternoon rather than raise their prices to cover the increased production/distribution costs. Makes perfect sense to those who have never run a business, taken an economics course, held a job, or been paid allowance by your parents after the age of 10.

Too bad these shortages aren't caused by peak oil, then we could get "Dumber than a stump" Jiggsy back in the game...peak oilers have been loath to show their faces after yet another claim has gone by the wayside.

If only it were that easy. They won't have that choice. It's not available. If this goes on long enough, many businesses in California will start declaring bankruptcy.

Now if the EPA would just give the two California refineries the permits to go back on line, we wouldn't have this problem in the first place.

 

[Katzndogz]

$4.69? $4.90? for your sake I hope you make alot of money that shit is insane, I'd be down to a skateboard if they tried to charge that isht down here.

No reason to give up happy motoring when the alternatives are so much better than skateboards.

Way too pricey for poor white folks

Didn't obama tell a man to buy a hybrid van for his large family to alleviate the costs of gasoline? There are no hybrid vans, but it didn't stop obama.