California Gas Prices Skyrocket

Gas prices have been increasing across the US, but none so fast as California. Between Saturday night and Sunday morning, prices rose twenty cents in some places.

Over the last week the state average has gone up fifty-two cents, to $4.65. Some places in the state are now well over five dollars a gallon, which the average could very well hit.

Production issues have aided the rise. An Exxon Mobil plant, in Torrance, was shut down for most of Monday, due to a power outage. That plant alone normally produces 150 million barrels a day. Chevron's plant in Richmond, the largest in the state, is still at reduced capacity since a fire in August.

But hurting production the most are government restrictions, which require the more highly refined "summer blend" to be sold til October 31. Most plants have already switched to the "winter blend", and are running out of the summer. Both Valero Energy and Exxon Mobil have begun rationing the shipments they send to the west coast.

The combination of those factors has greatly increased the wholesale cost of gas, and retail prices will rise for awhile longer, just to catch up. Some gas stations have had to stop selling gas, as they are running out of fuel, because they either can't afford it or can't get it. Long lines have formed at cheaper stations and people are beginning to stockpile gas, as fears of shortages rise.