Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps because of supply shortages that have driven wholesale fuel prices to record highs.
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, Jeff Cole, Costco’s vice president of gasoline, said by telephone. The company hasn’t been able to find enough unbranded summer-grade gasoline to keep its stations supplied, he said.
The gasoline shortage “feels like a hurricane to me, but it’s the West Coast,” Cole said 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, or wholesale, gasoline in Los Angeles climbed 30 cents to $1.45 a gallon over 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. The premium has surged $1 this week. On an outright basis, the fuel jumped to $4.3396 a gallon.
Gasoline at the pump gained 8.3 cents to $4.315 a gallon in California yesterday, according to AAA.com, 53.1 cents more than the national average of $3.784. In Los Angeles the price was $4.347. Gasoline futures for November delivery on the Nymex rose 11.15 cents to $2.911 a gallon at 1:35 p.m. today, after falling yesterday to a 10-week low. Retail price movements tend to lag behind those of futures.
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4 Responses
Drill, baby, Drill.
Interesting how high gas prices are hardly ever mentioned anymore by the MSM. Do you remember that when gas prices we’re up in the Bush years we saw article after article and heard news reports daily about the terrible burden the high price has put on the poor and middle class and how families have to cancel vacations because of the prohibitive prices. Oh the hypocrisy.
i await & watch the the entire country is about to shut down in bankruptcy
its just a matter of time
it the road now to eretz yisroel & save yourself. don’t wait until its too late C”V \.
i.e. how many yidden in europe & germany left before WWII when they all knew it was coming R”L? not more then 5 percent. thats sad. but thats whats happening now today as we remain in the USA & watch it go down into collapse step by step
save yourself now & go with what you still have, wait & soon thousands will be going in poverty R”L saying we have nothing left lets go to israel where the economy is better.
have a gutten moed
why was my blog not posted?