LOS ANGELES —
The dramatic surge came after a power outage Monday at a Southern California refinery that reduced supply in an already fragile and volatile market, analysts said, but the refinery came back online Friday and prices were expected to stabilize by next week.
Patrick DeHaan, senior petroleum analyst at GasBuddy.com, predicted the average price could peak as high as $4.85.
“There is some relief in sight but probably not for a couple of days. Early next week is when we may see some more significant declines ... but at retail prices, prices may climb for the next two to three days before they start to come down,” he said.
While prices were higher everywhere in California, there were variances Saturday. Chico had the lowest average price at $4.46, according to AAA, while San Luis Obispo was highest at $4.71. Prices averaged $4.67 in San Diego, $4.66 in the Los Angeles area, $4.55 in Fresno and $4.49 in Sacramento.
The price of diesel has also increased, adding significant costs for truckers who typically put hundreds of dollars of fuel in their tanks. It’s gotten so bad, some truckers may stop driving altogether, said Michael Shaw, spokesman for the California Trucking Association, whose members move 80 percent of the cargo on California’s roads each year.
“The fluctuation and rapid increase of prices makes it difficult to plan ahead and take on new contracts,” he said. “It’s difficult to operate in that environment.”
A web of refinery and transmission problems is to blame, analysts said. The situation is compounded by a California pollution law that requires a special blend of cleaner-burning gasoline from April to October, said Denton Cinquegrana, executive editor of the Oil Price Information Service, which helps AAA compile its price survey.
“We use the phrase ‘the perfect storm,’ and you know what, this current one makes those other perfect storms look like a drizzle. I don’t want to scare anyone, but this is a big problem,” Cinquegrana said. “Run-outs are happening left and right.”