California Gas Hits $6 As Newsom Waives Smog Rule To Control Surging Prices
Fuel markets are currently facing a perfect storm of tighter supply conditions as the average price for regular gasoline surges across California. In response to escalating fuel costs, Governor Gavin Newsom has suspended an anti-smog regulation, a move that could offer short-term relief to consumers at the pump.
New data from the American Automobile Association shows the average cost of a gallon of regular gasoline topped $6 this week in the progressive state that has been on a crusade against the oil industry and petrol cars and embraced electric vehicles despite having a fragile power grid.
Pump station tracking website GasBuddy shows the average price for gas in Los Angeles hit $6.227. In recent weeks, we've shared that states in the western half of the country have seen a rise in gas prices.
Bloomberg quoted Denton Cinquegrana, chief oil analyst at Oil Price Information Service LLC, who said Gov. Newsom had ordered the state's Air Resources Board to allow winter-grade gasoline at fuel pumps early to stop soaring prices. He said this could help decrease the spot price by $1.50 a gallon.
The governor's early release of the winter-grade gasoline blend means it will evaporate quicker in warmer weather, causing more smog for metro areas. Bloomberg noted, "Lower air quality is the price consumers are paying to keep inflation in check." So inflation outweighs so-called 'climate change'? But-but-but...
Data from AAA shows California residents are paying $2.20 a gallon more than the rest of the US. This is on top of out-of-control shelter and food costs.
"Governor Newsom's call for an early transition to winter-blend will quickly increase supplies of gasoline and restore much-needed liquidity to the gasoline spot market at a time when Californians are paying inflated prices at the pump," Tai Milder, director of the Division of Petroleum Market Oversight, said in a statement.
Milder continued, "Pursuant to the Governor's direction, the division is also committed to working expeditiously with stakeholders and experts on spot market reforms to protect consumers from the effects of market-distorting behavior that we have recently observed and bring rationality back to the California gasoline markets."
It's time for Newsom to blame 'Big Oil'... but don't mention the progressive state has the highest-priced gasoline in the country due to strict environmental compliance.
And it's only a matter of time before the governor and fellow Democrats blame Moscow for soaring gas prices. We penned a note in recent weeks, thanking President Biden and his 'green' climate warriors in the White House for disastrous energy policies.
The latest surge in WTI prices only means gasoline prices at the pump are set to move dramatically higher - where the national average could soon be around the $4 mark once more.
Prices at the pump are at a record high for this time of year, surpassing prior seasonal highs in 2022, 2012, and 2008...
Don't blame Trump...
Blame Biden: The administration has been 'laser-focused' on draining the Strategic Petroleum Reserve, which, in return, gas prices move higher.
... and the White House has even less room to drain the SPR for its 'strategic election' purposes.
Also, the NYMEX crack spread to multi-year lows of about $11.26 a barrel. When the spread declines below the refinery's break-even point, it indicates that the refinery is running up losses and might lead to production shut-ins that will cause even tighter supplies.
Soaring gas prices come as consumer confidence tumbled. Higher prices have translated to fewer miles driven by consumers.
The 'Bidenomics' narrative is floundering ahead of the 2024 presidential election cycle. People will vote with their empty wallets.
