Why U.S. Gas Prices Are Falling as California Rises

Why U.S. Gas Prices Are Falling as California Rises

Average gasoline prices across the country have been falling steadily since June. This is not so much the case in California, where prices have started to rise again since the beginning of September. KCRA 3 has been tracking gas prices since early March, based on AAA data. For months, our chart shows that the statewide average has mirrored the national trend. So far this month, however, California prices have topped the national trend. On Monday, prices averaged $5.405 per gallon in the state. This is up from $5.266 a week ago and $5.378 a month ago. (Video above: Record-breaking heatwave plunges California into fossil fuel conundrum.) Analysts said refinery issues are to blame for the problems affecting prices in California. “It looks like California is facing a tight supply,” said AAA’s John Treanor. “Given this is the refinery turnaround season, planned and unplanned maintenance is reducing production and failing to meet robust demand.” He explained that “rotation season” refers to scheduled events where oil refineries are taken offline for inspection and maintenance. “They are usually scheduled for fall and spring when demand is lower,” he said. Patrick De Haan, head of petroleum analysis for GasBuddy, directed KCRA 3 to a post on GasBuddy.com on Monday that also referred to refinery issues. “We continue to see the national average gasoline price decline, now for the 13th consecutive week. But we are seeing dramatically different price behaviors from coast to coast, with some regions seeing notable increases while others others see declines,” De Haan said in the post. “Refinery issues in California are causing more areas supplied by refineries in the state, including areas in Arizona, Nevada, Oregon, Washington and of course California.” The message goes on to mention that supply “remains tight” for the East Coast but prices remain lower in other parts of the country. He said he could continue to see another national price drop for the week, but that “we are in a very fragile period and we could certainly see a broader upside in the coming weeks”. Price updates, including by county in Northern California, with our interactive gas price tracker.

Average gasoline prices across the country have been falling steadily since June. This is not so much the case in California, where prices have started to rise again since the beginning of September.

KCRA 3 has been tracking gas prices since early March, based on AAA data. For months, our chart shows that the statewide average has mirrored the national trend.

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So far this month, however, California prices have topped the national trend. On Monday, prices averaged $5.405 per gallon in the state. This is up from $5.266 a week ago and $5.378 a month ago.

(Video above: Record-breaking heatwave plunges California into fossil fuel conundrum.)

Analysts said refinery issues are to blame for problems affecting prices in California.

“It looks like California is facing a tight supply,” said AAA’s John Treanor. “Given this is the refinery turnaround season, planned and unplanned maintenance is reducing production and failing to meet robust demand.”

He explained that “turnaround season” refers to scheduled events where oil refineries are taken offline for inspection and maintenance.

“They are usually scheduled for fall and spring when demand is lower,” he said.

Patrick De Haan, head of petroleum analysis for GasBuddy, directed KCRA 3 to a post on GasBuddy.com on Monday that also referred to refinery issues.

“We continue to see the national average gasoline price decline, now for the 13th consecutive week. But we are seeing dramatically different price behaviors from coast to coast, with some regions seeing notable increases while others others see declines,” De Haan said in the post. “Refinery issues in California are leading to an increase in areas supplied by refineries in the state, including parts of Arizona, Nevada, Oregon, Washington and of course California.”

The message goes on to mention that supply “remains tight” for the East Coast but prices remain lower in other parts of the country.

He said there could continue to be another national price drop for the week, but that “we are in a very fragile time and we could definitely see a broader upside in the coming weeks.”

Track the latest price changes, including by county in Northern California, with our interactive gas price tracker.

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