Why California could be contending with $5 gas next year
Tama/Getty Images California could soon be running short of gasoline, potentially hiking some of the highest gas prices in the country.
Refineries in the state have been closing for years with two more set to shutter soon: a Los Angeles-area refinery at the end of the month and a Bay Area one in April. Together, the two refineries provide about 17% of the state’s supply of gasoline.
California drivers already pay 50% more than the rest of the nation, about $4.32 per gallon. These closures could boost prices by another 50 cents, according to Andy Lipow, president of consulting firm Lipow Oil Associates.
“The loss of the refineries are certainly going to result in California having much shorter gasoline supplies,” Lipow said. “The price of gasoline in California will rise on a sustained level, because it’ll have to attract imported gasoline month in and month out.”
ALEXEY
Refineries in the state have been closing for years with two more set to shutter soon: a Los Angeles-area refinery at the end of the month and a Bay Area one in April. Together, the two refineries provide about 17% of the state’s supply of gasoline.
California drivers already pay 50% more than the rest of the nation, about $4.32 per gallon. These closures could boost prices by another 50 cents, according to Andy Lipow, president of consulting firm Lipow Oil Associates.
“The loss of the refineries are certainly going to result in California having much shorter gasoline supplies,” Lipow said. “The price of gasoline in California will rise on a sustained level, because it’ll have to attract imported gasoline month in and month out.”