This past week, I have driven my gas-powered Subaru from one end of Laguna to the other, plus made quick trips from Laguna to Costa Mesa as well as Laguna to San Clemente (twice). Along the way, I couldn't help but notice the price of gas at the pump. On average, I'd say a gallon of regular now costs $5.39 if you pay in cash. If not, the cost is $5.59 or more if you pay by credit card.
Given the current unrest in the Middle East, I'm guessing some critics will blame President Biden for the recent spike in gas prices at the pump. Not only is that unfair, it is totally incorrect. Here is what Tom Kloza, a global analyst for Oil Price Information Service (OPIS), says is the real reason gas prices are high now:
"Refinery challenges are the main culprit for California's surging prices, including an important Phillips 66 refiner in the Bay Area which is halting gasoline production in favor of renewable diesel."
Kloza then adds, "Throw in regularly scheduled maintenance that will occur at two critical refineries in May and the normal penchant for speculative buying in global markets in the second quarter, and you have wholesale prices that have gone ballistic."
So, the next time you fill up at the pump DBB (Don't Blame Biden). Focus your ire on the real reason gas prices keep going up. Simply put, it's because demand is high but production is low. Absent nationalizing the Big 5 oil companies, which no one wants, I'm afraid there is little the president can do to slow demand or speed up production.
-DF
I took this photo yesterday in Laguna.
Hi Denny, you got it right again as usual! Actually, a lot of other costs have gone up much faster than gasoline.