The California gas situation is getting bleak, as experts believe that the price of a gallon of gas will quickly be passing $4 per gallon. On Friday alone, it was reported that the average price of a gallon of unleaded gasoline in California jumped $0.09. However, prices jumped again on Saturday a whopping $0.13, which sparked even more outrage. The problem is that there is an overwhelming shortage of the California specific gas blend, which suppliers say there is none headed out this week – as of now.
The gas prices aren’t at all consistent, either. The survey found that one station could be running a price of $3.72, but at a station next door, the price could be $4.30. The incredible part of the entire story is that the major problem is California specifically. As the U.S. has cut down its dependence on foreign oil, the same can be said for California. Prices have been dropping, and so has demand. That though has now reached an apex and the problems are now plentiful.
There is a ton of demand, as California always ranks amongst the most densely populated in the country – and now there isn’t any gas to go along with it. One expert 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.” Now that the demand is there though, the prices will skyrocket as the demand will be met with desperation. As with anything in business it’s about a balance between high-demand and low-cost.
Patrick DeHaan a gasoline analyst for Gas Buddy pointed out that, “We have no gasoline as of Monday heading for the California coast.” He went on to point out that, it is a completely “dire situation.” The experts, like DeHaan think that gas prices will continue to climb, and could climb another $0.50 before reaching a peak, and slowly coming back down.
In the meantime, that means incredibly high prices that could even begin approaching the $5.00 mark. While that would be unprecedented for a number of reasons, it is only the latest worry to strike those in California. Heat, record breaking droughts, water shortages, and now incredibly high gas prices – are making California one of the most difficult places to live.
Some experts still maintain though that the problem is largely California’s own doing. They get and sell gas through a really unique process, and it’s one that has come into question for a number of years. This repeated questioning has led to a lot of experts wondering how that process will change after this phase of high gas prices end, and customers reach their tipping point.