Business

Gas prices in California are rising to $ 4.66 – about a penny away from a record through the ages




The largest state in the United States has the highest gas prices in the country. The national average fell slightly to $ 3,416 on Friday.

AAA said heavy rains in northern California have pushed production capacity, which then trickled down to southern California – just like what happened in Louisiana with Hurricane Ida.

Angry at petrol prices?  Blame on Wall Street

“It’s a bit of a supply crisis we have right now, it’s not a big deal until the refineries in Northern California can return to full production capacity,” said Jeffrey Spring, Corporate Communications Manager at Automobile Club in Southern California.

Prices are pushing $ 5 in some areas, including Northern California’s Humboldt County, where the average price was $ 4,971 on Friday. Bay Area has increased to over $ 4.80.

Gas prices have risen steadily throughout the year as demand for fuel grows around the world and suppliers have been unable – or unwilling – to produce more oil. Although US oil prices have risen by more than 65% this year, US oil production is about 14% below levels at the end of 2019, before Covid broke out.
Gasoline prices have risen to seven-year highs, and Wall Street banks are warning that $ 100 or even $ 120 oil is on the way.

Prices have not plateaued yet, Spring said.

“What’s happening in the Bay Area indicates that we may be on top of this price increase, with the exception of other issues,” Spring said. “So we hope by the end of the year that things will start to go down.”

California reached a record price in 2012 after refining errors that led to prices rising for a few weeks before declining again.



Source link

Back to top button