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

Discussion in 'Energy' started by Trajan, Oct 4, 2012.

  1. Trajan
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    Trajan conscientia mille testes

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


    "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
     
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  2. nitroz
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    nitroz INDEPENDENTly ruthless

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    Jeez, thats really alot. And not to mention about how the quality of gas is much lower over there.
     
  3. Matthew
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    Matthew Blue dog all the way!

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    Obama is sounding more like Carter II.
     
  4. Katzndogz
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    Katzndogz Diamond Member

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    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.
     
  5. uscitizen
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    uscitizen Senior Member

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    More jobs were created under Carter than under Bush.
     
  6. Soggy in NOLA
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    Soggy in NOLA Platinum Member

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  7. Katzndogz
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    Katzndogz Diamond Member

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    Next will come empty shelves at the grocery store as trucks can't afford to stay on the road.
     
  8. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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  9. Katzndogz
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    Katzndogz Diamond Member

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    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.
     
  10. The Infidel
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    The Infidel EVIL CONSERVATIVE

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    Wrong election... nobody cares about Boooosh
     

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