The gasoline prices in some parts of Southern California are reaching peaks due to a wide variety of reasons. Inflation is certainly a contributor to the price increase. At the same time, local refineries have switched to a different blend. Since Friday, the prices have continued to inch higher.
Local firms note that they are shifting to a new and expensive blend. In addition to this, the price is expected to increase further in the coming weeks.
The Fuel Prices Are Elevated Across California
Comparing the prices all over California, the prices in Los Angeles have increased by five cents in the past few weeks and have reached an average value of $4.72. According to Auto Club data, this has been the highest increase from November. Moreover, other areas such as Orange and Ventura have also witnessed a similar increase which took the price of gasoline up to $4.70.
The increasing price of gasoline is surely troubling the driver, too, as they continue to pay hefty prices for gasoline. The most expensive gasoline was in the Golden State in the Mono Country at a rate of $5.50, which is almost $1.5 greater than other states on average.
The Various Factors That Contribute To Price of Fuel
The increasing price of gasoline is undoubtedly not favored amongst the residents and the drivers. However, there is not one but many factors contributing to the increasing prices of gasoline. Amongst all these factors, the contribution of refineries in increasing gasoline prices is the most. This is because refineries are switching to new blends known as summer blends. These new summer blends will function as a substitute for the cheaper blends in terms of function. However, the old cheaper blend known as the winter gasoline blend was much more favorable in terms of affordability.
The refineries began dispensing the expensive summer-blend to Southern California through pipelines. On the flipside, we see oil prices did rise by at least $10 per barrel. Further, we notice that WTI crude oil has risen by more than 30% over from last year. The mark-up in oil price is attributed to world tension and OPEC concerns.
Experts have also warned that the hike in prices might continue due to the upward pressure of supply chains, general inflation, and other disruptions. If the upward pressure of gas spikes, people will encounter an increase in gasoline prices in southern California and other associated areas.
As the general public is already concerned about the hike in gasoline prices, there are some things they can do to make the most of their gasoline mileage. This includes putting less weight or emptying their trunks if there are any heavy items. They should also ensure that the tires are properly inflated with appropriate gas pressure. Moreover, look at fuel-saving apps and think about driving slower.