Southern California gas prices have shattered a 94-year record high, making
it cheaper to fuel your vehicle with refrigerated milk than to buy gasoline.
In San Diego, the current average price is $4.69 a gallon
The last record high was $4.64 a gallon in June of 2008 when WTI crude
cost $147 a barrel. Yesterday,WTI closed at $89 a barrel.
cost $147 a barrel. Yesterday,WTI closed at $89 a barrel.
Even when you adjust for inflation, the current average gas price of $4.69
a gallon is highest in U.S. history since 1918, when the national average for
a gasoline was an inflation-adjusted $3.75
THE WHOLESALE PRICE PICTURE:
Wholesale prices drive retail prices.
This morning, the wholesale prices being charged to unbranded dealers --
dealers who must purchase surplus fuel on the open market -- had dropped.
However, many wholesalers are posting a "lower" price, but aren't selling
fuel, so the price reduction creates a statistical illusion of a downward
moving market.
However, many wholesalers are posting a "lower" price, but aren't selling
fuel, so the price reduction creates a statistical illusion of a downward
moving market.
UCAN's gas project tracks selected wholesalers, and our average shows a decrease
of 23¢ a gallon since Thursday, but this huge downward move is still a
minor decline from a Mount Everest style price spike of 75¢ since
Monday. When the wholesale prices charged to both branded and unbranded dealers
are accounted for, the wholesale price increase since Monday has been
a monstrous 49¢ - roughly 42¢ on average for brand-name retailers and
40¢ for unbranded.
Our analysis shows that given current wholesale prices, an unbranded
independent dealer must charge a minimum price of $5.10 to $5.25 a
gallon in order to break even on a wholesale gasoline purchase after
paying for local, state and federal taxes.
At this time, brand name dealers are able to buy gasoline -- if it is
is available -- for as much as 50¢ less per gallon than unbranded dealers.
Normally, unbranded dealers are the price-cutters in the marketplace:
They force the major brands to compete on price. At this time, there is no
price competition to force brand name dealers to lower their prices. As
a result, prices are likely to continue rising until competition returns.
On Thursday, UCAN predicted that gas prices could increase by as much
as 40¢ a gallon by Monday, October 8. Currently, San Diego is just 4¢
away from making that prediction a reality.
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| San Diego | CHANGE | 10/4/2012 | 10/4/2012 | Monday |
| SATURDAY | THURSDAY | 10/1/2012 | ||
| SD RUL | 36.2¢ | 4.690 | 4.328 | 4.162 |
| SD DSL | 4.5¢ | 4.500 | 4.455 | 4.431 |
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|
Southern California |
|||||
| 10/4/2012 | 10/4/2012 | Monday | |||
| CHANGE | SATURDAY | THURSDAY | 10/1/2012 | ||
| 0.3620 | San Diego RUL | 4.690 | 4.328 | 4.162 | |
| 0.0450 | San Diego DSL | 4.500 | 4.455 | 4.431 | |
| 0.3140 | Los Angeles RUL | 4.661 | 4.347 | 4.184 | |
| 0.0410 | Los Angeles DSL | 4.541 | 4.500 | 4.476 | |
| 0.3200 | Orange Cnty RUL | 4.650 | 4.330 | 4.162 | |
| 0.0370 | Orange Cnty DSL | 4.493 | 4.456 | 4.442 | |
| 0.3230 | San Bern RUL | 4.621 | 4.298 | 4.146 | |
| 0.0340 | San Bern DSL | 4.479 | 4.445 | 4.410 | |
| AVERAGES | AVERAGES | AVERAGES | |||
| 0.3298 | SOCAL RUL | 4.656 | 4.326 | 4.164 | |
| 0.0393 | SOCAL DSL Avg | 4.503 | 4.464 | 4.440 | |