Posted in: Gas Prices,
by Patrick DeHaan on Apr 15, 2014 02:09 PM
California motorists are getting hit hard- not only does the state boast the highest average price in the lower 48, but it also has seen the largest jump in prices in the last week, jumping 13c/gal to $4.18/gal, the highest price in over a year.
The latest jump comes as refinery kinks have pinched supply, resulting in supplies that are running 7% lower than they did a year ago, and a huge 10% drop versus last week. Across the state, the pain is worst in Los Angeles and areas of Southern California. LA has seen prices spike 16c/gal while prices have jumped 12c/gal in the Bay area.
While I don't expect these large increases to continue in the week ahead, more increases are likely, but there is relief coming. I expect prices will peak in the next 2-4 weeks in California before they start declining again. By Memorial Day, prices should already start moving lower, and that trend could hold until June, bringing California's average gas price back under $4/gallon.
Every major city in California now stands above its price of one year ago, but we do fully expect a moderation in prices soon, and that overall prices the remainder of the summer will be quite a bit lower than they stand now.