Since the middle of last week, the wholesale price of gasoline has increased about $1 per gallon. Retail prices have followed, in some cases, reaching the record highs set in 2008 when crude oil jumped to almost $150 per barrel. This time the price spike is caused by California refinery problems, not rising oil prices and is isolated to California and gasoline. Diesel prices increases have been significantly less. Since the fire at the Chevron refinery in Richmond, gasoline inventories have been low. These low inventories coupled with refinery maintenance and unplanned problems at other refineries have created a wild trading market with no apparent ceiling on prices.
Retailers deal directly with consumers who are saddled with these higher prices. We recognize the significant burden these high prices place on household and company budgets. It is always difficult to predict how long or high prices will go. Generally these types of problems are resolved fairly quickly. Hopefully this is the case this time.
For additional information, please feel free to contact Rotten Robbie president, Tom Robinson, directly at 408-327-4334 or toll free at 866-258-5882.