Gov. Brown steps in to reduce record Calif. gas prices
Gov. Jerry Brown is taking emergency measures to push down the record cost of gasoline that hit an average high of $4.66 a gallon Monday in California, surpassing Hawaii as the highest in the nation.
One station in Long Beach had the state's priciest gas at $6.65 for a gallon of regular, according to GasBuddy.com. Meanwhile customers at an outlet in San Pablo paid $3.49, the lowest price in the state, the Associated Press reports.
GasBuddy, which surveys gasoline prices nationwide, reports that the average per gallon nationally is $3.79.
Brown has directed the state's Air Resources Board to allow the immediate sale and import of cheaper and more available winter-blend gasoline.
The Sacramento Beereports that the governor's move on Sunday follows a request by the California Independent Oil Marketers Association for permission to produce winter-blend fuel before the typical switch-over date of Oct. 31.
The Times quotes energy experts as saying the move could drive down prices by 15 to 20 cents a gallon.
The newspaper notes that special winter-blend gasoline, which is considered more detrimental to air quality during warm weather, evaporates quicker than the gasoline sold during the summer.
The Los Angeles Times says analysts attribute the sudden price surge to refinery and pipeline problems that have hit supplies in a state that already pays a premium for cleaner-burning fuel.
One Chevron Corp. refinery has been running at reduced capacity because of a fire in August, and a pipeline carrying oil from Kern County to the San Francisco Bay area was shut down because of contamination, the Times reports.
As prices for refined gasoline jumped sharply in California, crude oil prices fell for a second day in New York before a meeting of European officials.
Bloomberg BusinessWeeknotes that the fall comes amid speculation that Europe's debt crisis and an economic slowdown in Asia will curb fuel demand.
Crude for November delivery fell as much as $1.67 to $88.21 a barrel in electronic trading Mionday on the New York Mercantile Exchange, BusinessWeek reports. Prices are down 10.3% this year.