California Gas Prices Still Heading Lower
California’s average price for gasoline falls to $2.78 per gallon today.
Gas Buddy says one station in the state is selling gas for $2.19. The lowest price for gas in Visalia is $2.45 at several stations. On the Coast in SLO, Costco is selling gas today for $2.55.
Farmers Should Be Winners With Diesel Down Below $3
Like gasoline diesel prices are at a three-year low this month helping to move trucked goods more cheaply to customers.For farmers who need diesel to power their equipment, it is a welcome break in the cost of business as well. The national price for diesel has not fallen as fast as gas and is still $3.50 a gallon but falling while the California average is $3.32 on December 15 says the energy commission. Diesel is available in Visalia for below $3. Diesel powers a large majority of California farm equipment, moves products to market, and pumps a large share of the water used in irrigation.
One rice farmer in California who farms 2,000 acres and uses 80,000 gallons of diesel per year. His diesel expense is up approximately $80,000 over last year’s but is falling now. This week diesel prices were as low as $2.65 gallon in the LA area. The state’s diesel prices was near $4.50 a gallon in 2012.
Kinder Morgan Talks Texas To California Pipeline
The Bakersfield Californian reports that Kinder Morgan has renewed plans to build an oil pipeline from Texas to Maricopa California. The paper says the the proposal “has undergone changes designed to make oil from the Permian Basin more palatable to California refiners. Refineries in the state generally process the kind of heavy crude commonly produced here and in Alaska. Kinder Morgan’s modified proposal would process lighter Texas crude to make it more suitable to refineries in the Golden State.”