16% of California's refining capacity now offline; consumer group seeks probe into shutdowns

[Newsjock]

Source: Los Angeles Times

An explosion Wednesday morning at the Exxon Mobil Corp. refinery in Torrance is compounding concerns that limited oil refining capacity in California could push up fuel prices.

... Consumer Watchdog’s consumer advocate, Liza Tucker, in a letter to politicians, including Gov. Jerry Brown and Atty. Gen. Kamala Harris, voiced suspicions that the oil companies shut down the refineries in an attempt to manipulate prices.

Tucker urged officials to send independent investigators to both facilities to probe the reasons behind the shutdowns.
“Unfortunately, California refineries have a history of trying to manipulate gas prices by restricting supply,” she wrote.

... Gasoline prices, Tucker said, are rising faster in California than in the rest of the country. The average price of a gallon of regular gas was $2.26 nationwide on Tuesday, up 8.8% from a month earlier. In California, a gallon now costs $2.80, up 11% over the same period.

“Gas prices are now going to jump 10 cents overnight and then another 10 cents,” Tucker said.

Read more: http://www.latimes.com/business/la-fi-exxon-explosion-gas-prices-20150218-story.html

[panader0]

1. I thought it was a minor accident (if there is such a thing)

I can't see 16%....but I do think Exxon may be pissed about the recent low prices.

[Wellstone ruled]

2. Nothing new here,same old market

manipulation by the Chicago Board of Trade. Here in Vegas we see the same price gouging. When the Glass-Steigle Act was trashed,you could see this coming miles away.

[One_Life_To_Give]

3. Lowest Gasoline consumption is in the early spring

If you don't have surplus capacity in Feb and March, you will be critically short come June and July when consumption peaks.

[Amishman]

4. temporarily allow out of state gas blends

and prevent the oil companies from profiteering off this.

CA's laws requiring specific gas blends creates a nice little monopoly for the refiners who produce the CA only blends.

[KamaAina]

5. One would think that out-of-state refineries might start producing California gas

if they see a market opportunity.