Big Pumpin': Gas Prices Shoot Up Over Past Two Days

The per-gallon rate jumped 4.9 cents Friday and 6.1 cents today, Saturday.

The average price of a gallon of self-serve regular gasoline in the Southland jumped more than a dime in the last two days, according to the latest Auto Club survey.

In Orange County, prices jumped up 4.9 cents Friday and 6.1 cents today, Saturday. The Orange County average is now $4.323, which is 11.7 cents more than a week ago, 8.2 cents higher than one month ago and 8.1 cents greater than one year ago.

The price went up 4.3 cents Friday and 6.1 cents today in Los Angeles County, and now sits at $4.337. Today's increase was the biggest daily jump since Feb. 23, according to Jeffrey Spring of the Automobile Club of Southern California.

The average price is 10.8 cents more than one week ago, 6.9 cents higher than one month ago and also 6.9 cents higher than one year ago, according to figures from the AAA and Oil Price Information Service.

The sharp increases stem from record low gasoline inventories and continued West Coast refinery issues, Spring said.

MFriedrich May 14, 2012 at 09:50 PM
I know one reason why. Guess where Mexico gets it's gasoline? No, not from Pemex (state run oil co.) Mexico number of operating refineries is woeful.And the ones they do have are antiquated and not operating at full capacity. Mexico has decent oil production, but gets most of its gasoline from refineries in the US. Yes, running the pipeline from Hardisty all the way down to refineries in TX and LA makes a lot of sense.
Yeparoo May 14, 2012 at 10:01 PM
If I am understanding your correctly (And I'm assuming you work for a Big 4 accounting firm), big oil is writing off expenses they didn't have. They are writing off expenses with a pretend inflator that goes up parallel to the inflated value of revenues. Wow. That sucks. Off with their heads! Can anyone shed light on this?
Yeparoo May 15, 2012 at 04:12 AM
Nom de Plume - smga3000 was right. Maybe a beer summit is in order? Crude is has gone from $106 to $96 (and now $94) in the last 2 weeks. NATIONALLY gas dropped 20 cents per gallon. On the WEST COAST, gas is up 16 cents per gallon. Why? 5 out of the 12 refineries in CA went off line for blend change over maintenance. Plus a WA unit had a fire a few months ago. Good news is units will come back online. West Coast spike in gas prices tied to refineries http://www.ktul.com/story/18389838/west-coast-spike-in-gas-prices-tied-to-refineries Gas prices fall and Obama gets a boost http://www.politico.com/news/stories/0512/76076.html
Joel Peshkin May 15, 2012 at 12:04 PM
Look at it this way... You dig a hole in a public park and find some gold. You figure there is 50 million in gold but you haven't taken any out yet, so you don't pay any taxes on it. Now, you pull out a million dollars in gold and sell it and pay taxes on that. The hole now has a million dollars less gold in it, so you get a tax deduction for the million dollars less gold that is in the ground. I don't know of any other industry that gets a break like that.
Yeparoo May 15, 2012 at 04:24 PM
Joel - Ok, the one thing I cannot seem to get a clear answer on is exactly what is being written off as an expense. Is this whole debate over whether the oil companies are using LIFO or FIFO cost accounting methods, or are they allowed under the tax code to write off imaginary expenses (aka subsidy). I am with you on everything except this: "The hole now has a million dollars less gold in it, so you get a tax deduction for the million dollars less gold that is in the ground." I know that oil cos pay allot of taxes, so they can't both claim $1 million and write off $1 million. That would result in zero taxable income. Lets assume we are only talking about exploration and extraction costs of oil (i.e. oil cos pay cash for this) and the oil is sold and picked up at the well. I would get it that the tax code wants the cost of goods to match when the revenue is claimed. What else are they allowed to claim that would not be considered a cost of doing business that needs to be rolled back?


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