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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 its going to cost me $4.90 a gallon, and I cant sell it here for $5," and another added that "were going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. Theres no sense in staying open. The profit margins are so low its 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
"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 its going to cost me $4.90 a gallon, and I cant sell it here for $5," and another added that "were going to start shutting pumps Friday, as gas is costing me almost $4.75 a gallon with taxes. Theres no sense in staying open. The profit margins are so low its 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