California Gas Stations Shut as Oil Refiners Ration Supplies

Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps as the state’s oil refiners started rationing supplies and spot prices surged to a record.

Valero Energy Corp. (VLO) stopped selling gasoline on the spot, or wholesale, market in Southern California and is allocating deliveries to customers. Exxon Mobil Corp. (XOM) is also rationing fuel to U.S. West Coast terminal customers. Costco’s outlet in Simi Valley, 40 miles (64 kilometers) northwest of Los Angeles, ran out of regular gasoline yesterday and was selling premium fuel at the price of regular.

The gasoline shortage “feels like a hurricane to me, but it’s the West Coast,” Jeff Cole, Costco’s vice president of gasoline, said by telephone yesterday. “We’re obviously extremely disheartened that we are unable to do this, and we’re pulling fuel from all corners of California to fix this.”

Spot gasoline in Los Angeles has surged $1 a gallon this week to a record $1.45 a gallon premium versus gasoline futures traded on the New York Mercantile Exchange, data compiled by Bloomberg show. That’s the highest level for the fuel since at least November 2007, when Bloomberg began publishing prices there. On an outright basis, the fuel has jumped to $4.3929 a gallon.

Read more here.

Author: AKA John Galt

A small business owner, a tea party organizer, a son, father and husband who is not willing to sell out the future lives of his children.

2 thoughts on “California Gas Stations Shut as Oil Refiners Ration Supplies”

  1. Congratulations, California. Thank your vacuous, empy-headed voting constituency for ushering in the Marxist morons that run your state government (and federal government, for that matter) for bringing you this lovely event – unfolding now before your blind, unbelieving eyes.

    Enjoy the ride – it’s just beginning. That house of cards is beginning to fall.

    1. Gas on the corner of roscoe and winnetka ave is now 5 dollars a gallon.
      The station is a Mobil ,and across the street is an Arco,selling gas at 4.69 a gallon.
      And yes you are correct about the stupid voters in California .

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