Thursday, October 4, 2012

California Gas Stations Shut as Oil Refiners Ration Supplies

I had been watching gas prices in CA for the past few weeks.  And today the price shot up 16 cents.  Now I read you guys are running out of gas?

“The squeeze is on, and people are doing desperate things,” Bob van der Valk, an independent petroleum industry analyst in Terry, Montana, said by e-mail yesterday. “The mom- and-pop gas stations are having to close down from either not being able to obtain gasoline from their regular distributor or cannot afford the break-even price of almost $5 per gallon.”

Costco is working on a plan to alert its members as gasoline runs out at the company’s stores “so customers don’t have to guess where to go,” Cole said. The company will sell whatever premium gasoline it has stored for regular gasoline prices wherever supplies run out, he said.

“Costco is a membership warehouse club with a relationship based on trust,” he said. “We’re not delivering what the members asked us to deliver, and that’s not acceptable to us. So we’re doing whatever we can to fix it.”

Look at this graph of gas prices in CA:

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