October 21,2022
Los Angeles Reformulated RBOB Regular Gasoline Spot Price is at a current level of $2.548, down from 2.883 the previous market day and down from 2.604 one year ago. This is a change of -11.62% from the previous market day and -2.15% from one year ago.
Even more impressive is the drop from the second week in October when the spot price was $5 a gallon -now cut in half as refineries resumed normal operations.
What does a drop of $2.50 gallon on the spot market mean? Certainly it should mean a drops of $2.50 a gallon at the pump as these lower prices hit the gas stations.
The last two weeks of September the California spot market for gasoline shot up by about two dollars per gallon analysts say . The increase was reflecting a shortage of California gasoline, probably caused by refineries being down for maintenance and in one case unplanned disruption. notes the Sacramento Bee. Some of those refineries are now increasing output and Gov. Newsom moved forward the switch to winter blend gasoline. During the summer, California refineries have to produce gasoline that will help curb pollution. Winter blends don’t have such strict requirements, and are less expensive to produce. Newsom recently told refineries to start their winter blends immediately rather than wait until next month.
That may be a key factor we as we are and will get more relief at the pump. Gas prices in the Golden State have dropped 32 cents in the past week as of today says AAA. With an eye on wholesale – those retail prices should continue way down.