Tom Warne Report, 12 October 2012
LOS ANGELES – Gas prices in California went down by a half-cent Wednesday after reaching record highs on Tuesday, the first drop after surging a record 50 cents in a week. The statewide average for a regular unleaded was still the highest in the nation after the slight drop, at $4.67 a gallon, according to AAA’s Daily Fuel Gauge Report. Gas prices increased more than 50 cents a gallon between Oct. 1 and Oct. 8, from $4.168 to $4.671, setting a record as the highest one-week spike in the state’s history, AAA spokesman Avery Ash said. The old record was 26.2 cents a gallon increase in February.
Some of the factors contributing to the price surge was an August fire at Chevron Corp.’s massive Richmond refinery, and a power failure at an Exxon Mobil Corp plant near Los Angeles.
“I think the worst is in the rear view mirror right now and that between Halloween and Election Day California will be back to where we were before the spike,” said Denton Cinquegrana, executive editor of the Oil Price Information Service that helps AAA compile its gas price report. Despite the half-penny decline Wednesday, prices remained higher than $5 a gallon at many state gas stations.
I saw reports of prices at over six dollars a gallon. Who would have thought we’d see prices well over $5 a gallon? High gas prices make it almost impossible to raise the gas tax. I may age myself but I do remember when it was 26 cents a gallon. TW