While others are benefiting from lower gas prices, the price of California gas continues to rise.
ABC 30 reported that the price can go as high as $4 per gallon. Trilby Lundberg, an expert in the field, explained that the main reason for the price hike is shortage in oil. Aside from that, California is also experiencing some shortage on some components that are being used in refining California gas to make it "less polluting."
It is also believed that the decrease in the supply of gas from foreign supplier has contributed to the increase in the California gas pricing. The inventory decreased by at least 42 million gallons, while foreign supply went down to zero. The shutting down of a gas refinery in Torrance didn't help either, CBS Sacramento has learned.
To make matters worse, the price of California gas varies from one gas station to another. Gas stations usually have the same price per gallon, however, the price gap is currently wide, reaching almost 58 cents per gallon.
Press Herald reported that a few months ago, California gas prices were dropping continuously. Patrick DeHaan, a senior analyst at Gas Buddy, said that this is the main reason why foreign gas suppliers found California to be unattractive.
The situation seems to be getting better as foreign gas suppliers started to bring their products to California again. Lundberg said, "Exports from outside the state in the U.S. and abroad did not have a great incentive to come in, but now they do."
This is good news to consumers as it was earlier reported that the sudden increase in gas price was not expected and that it can last for an indefinite period of time.
It remains to be seen whether California gas can catch up to the average gas price nationwide. The midgrade gas has an average price of $3.05 and the premium gas' average price is $3.22.
