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Governor Orders Switch To Winter Gas To Dampen Price Spike

The governor ordered the California Air Resources Board to allow refiners and gas stations to roll out the winter blend before its previously—scheduled Oct. 31.

Gov. Jerry Brown Sunday ordered California smog regulators to allow winter-blend gasoline to be sold in California this month, a move intended to reverse a sudden scare in the wholesale gasoline market that saw prices shoot up nearly 50 cents a gallon in six days.

The average price of a gallon of self-serve regular gasoline in San Diego County climbed 3.8 cents overnight to settle at $4.712, a record high for a second day, according to figures from the AAA and Oil Price Information Service. The previous local record of $4.63 was set June 19, 2008.

The governor ordered the California Air Resources Board to allow refiners and gas stations to roll out the winter blend before its previously- scheduled Oct. 31 sales date, an action the governor said will increase gas supplies up to 8-10 percent, "with only negligible air quality impacts."

In a letter released at noon Sunday, as California gas prices fluctuated widely for the seventh straight day, the governor said the market variations were imposing "unacceptable cost impacts on consumers and small businesses." This, he said, was threatening "significant economic disruption, and serious harm to public safety and welfare."

The average price in San Diego County has gone up 55.8 cents over the past week, which included a jump of 19.5 cents on Friday, according to the AAA and Oil Price Information Service. It is now 55.4 cents higher than a month ago and 91.3 cents more than a year ago.

An analyst said California's wholesale gasoline market has gone "into a panic about the adequacy of California fuel supplies," Jeffrey Spring of the Automobile Club of Southern California said the market disruption followed a power failure at the ExxonMobil Torrance Refinery and closure of a Chevron pipeline that moves crude oil to Northern California last Monday.

Other pressure on the state's gas market includes local refineries dropping production levels, energy companies exporting fuel to Mexico and other countries, and allowing inventory to dwindle in anticipation of switching over to production of winter blend gasoline, Spring said.

"I am directing the Air Resources Board immediately to take whatever steps are necessary to allow for an early  transition to winter-blend gasoline" to be sold in California, the governor said in a letter to Mary Nichols, his appointed head of the CARB.

Some clean air advocates had worried that such a move would hurt air quality in October, which is one of the hottest months in coastal California due to Santa Ana windstorms and other seasonal weather fluctuations.

The governor said today that winter gas evaporates more quickly than summer blend, which takes longer to evaporate and is better during the smoggiest months of the year in the summer.

Brown said he expected gas prices to settle down, now that the ExxonMobil refinery in Torrance has resumed operations following an electricity outage last week. A Tesoro refinery in the San Pedro area is expected to resume production next week, after its maintenance shutdown.

-City News Service

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Kris Blaszcak October 7, 2012 at 05:29 pm
The idea that gas prices have to jump up immediately when there is a problem is a new one; just one more way the oil companies are jacking Americans. And yet, these same companies are making billions - this is criminal.
Camille Grace October 7, 2012 at 06:04 pm
Like the gas priced California? Keep voting for Obama!
robert joesph carroll October 7, 2012 at 06:12 pm
Its not Obama,s fault. Its the big oil companys fault
PwmCwzy October 7, 2012 at 06:16 pm
Like Obama has something to do with this.
David Baker October 7, 2012 at 06:19 pm
lol.. please stop, lmaorotf, please i cant stop laughing...
John Pilch October 7, 2012 at 06:22 pm
I fully agree. Governor Brown should have "advised" the refiners to stop the shenanigans and price their product fairly. Hate to have government intervention, but this is ridiculous (again).
David Baker October 7, 2012 at 06:30 pm
...and getting billions in subsidies from taxpayers.
CARRIE S. October 7, 2012 at 07:14 pm
No.its all my fault..sorry cant prove it.hang in there people
CARRIE S. October 7, 2012 at 07:33 pm
So is our water bills going to sky rocket because if a pipe burst here in carlsbad too?
Uh no. fix it.
Matt October 7, 2012 at 08:14 pm
Feinstein is looking into the fraud.
John Galt October 7, 2012 at 10:21 pm
It is GWB's fault!
Nebraska Jones October 7, 2012 at 11:14 pm
Looking into the fraud? To what end? Of course there is fraud. What will happen? Not a damn thing!
Halo Spartan October 8, 2012 at 12:07 am
My son's and I pollute the air more than any auto can. Get rid of these lame regulations. I guess we'll eat Mac'n'Cheese all week so we can afford to get to work.
John Galt October 8, 2012 at 02:09 am
The state of California is not complaining. There is the typical 7.5% plus local sales tax on every dollar of gas sold. In addition the state has another flat fee tax per gallon, as does the feds.
The concern is really three parts. A) Affordablity to the lower earning drivers. B) A break in the supply chain. C) Cost of everything going up. From Pizza to gum. Everything. Scary thing is the rest of the United States will see the same thing if we don't change leadership. (lack of leadership)
Libi Uremovic October 8, 2012 at 10:27 am
cities are responsible for their roads, sidewalks, alleys.... but the cities wasted their local tax dollars and would not fix their roads so the state stepped stepped in and added 'gas tax' which gives the cities extra tax revenue that is only supposed to be used for the repair and maintenance of roads.....but the city officials wasted that money too...
....so the state imposed 'prop a' which gives the cities a massive amount of revenue to repair and maintain roads... ...and the cities waste the money as fast as they can.... imperial beach receives $2 million/yr in extra tax subsidies but only $300,000/yr can be tracked .... where's the only $1.7 million ? the state should cancel the gas tax and prop a.....give the money back to the tax payers because our local governments are just wasting it...
Libi Uremovic October 8, 2012 at 10:29 am
cali fuel has an additive that makes the fuel burn cleaner, but it also burns 30% faster - which defeats the parts-per-million purpose....
Jay Berman October 8, 2012 at 01:17 pm
We probably don't need these blends anymore as most gas pumps have been refitted with new vapor recovery systems ... Then we can import more of our gasoline from out of state, this will cut the cost of our gas year round without the seasonal spikes ...
But Moonbeam would rather have us paying so much for gas that we are forced to ride motorcycles and bikes or take the bus ... the progressive dream ...
greg Chick October 8, 2012 at 01:27 pm
Lets give Oil another $27 Billion is subsidies so out gas prices will go down......
Greg Chick, Oh, but alternate power needs "Free market" God Bless America.
Laura October 8, 2012 at 01:51 pm
Nothing makes sense, never does and all we have is this comment box to complain in. If only....If only....we didn't HAVE to rely on gasoline.....
Tom Yarnall October 8, 2012 at 02:10 pm
If the governor really wants to help the citizens he would demand that federal land be opened to drilling. We have enough reserves to last for over 100 years. Plenty of time to develop efficient alternatives if the green liberals, like Sen. Feinstein, would get out of the way and let private industry get on with it.
Forget about subsides. They are a drop in a good bucket of oil.
Komfort October 8, 2012 at 02:33 pm
"This page contains a compilation of links (in no particular order) to articles and information about the Hien T. Tran Fraud. Hien T. Tran was the lead scientist who wrote the report upon which the heavy duty truck and bus regulations are based. He bought a mail order Ph.D. from Thornhill "University" located at 255 Madison, New York. Using his fake Ph.D., the unqualified liar applied for and got the position as Manager of the Health and Ecosystem Assessment Section. Some of the board members, the chair of the California Air Resources Board, Mary Nichols knew of the fraud before voting on the controversial regulation. The board members who knew, kept the information from other board members for nearly a year after the vote. The Governor also had the information and failed to take action."
http://killcarb.org/tranpage.html
Joe St. Lucas October 8, 2012 at 03:49 pm
Tom, you're old enough to remember the 1970's when "people" were telling us that the world will run out of oil by 1980 so we should quit using our gas powered cars because they'll all be relegated to rusting heaps w/o fuel.
Now we have reserves up the wazoo.
Mike G October 8, 2012 at 09:22 pm
As usual our elected officials (Brown, Feinstein, Boxer) are being reactive vice proactive. Now that the damage has been done they'll spout rhetoric and the typical liberal California simpleton will lap it up as positive action. How much are you willing to bet that big oil will once again report record quarterly profits and much of that from ass-ramming Californians for a couple of weeks?
Tom Yarnall October 8, 2012 at 10:31 pm
Yes,Joe I do remember. I, also, remember in 1973 gas being around 40C per gallon even during the Opec boycott.
I, also remember Jimmy Carter initiating the Energy Department with the objective of developing a strategy to eliminate the need for Opec oil. That has worker very well hasn't it? We now have an entity of thousands of people costing billions of taxpayer dollars who have done, and continue to do nothing of consequence.. We have plenty of reserves, esp. natural gas that burns efficiently in internal combustion engines. If only the Obama federalist and tree humpers would get out of the way.
Alissa Brennan October 9, 2012 at 02:08 am
lol obamas fault! Ya ok. Most republicans are RICh from oil.
Whisky Foxtrot October 9, 2012 at 02:50 am
It's really not the President, the Governor, or even the oil companies themselves that are to blame. It is the broken oil market system that allows for speculation from folks that won't actually be taking delivery of any oil/gas. Read that this was caused by a panic in the wholesale market, not necessarily big oil execs deciding to raise prices on a given day (not that I would put that past them).
Libi Uremovic October 9, 2012 at 08:03 am
carters' energy program worked just fine...it cut the country's dependence on foreign oil in half...
...reagan cut the program an doubled the country's dependence in oil.... think what a different country we would live in today if we hadn't sold out our country 30 years ago... the reason politicians get away with corruption is because people follow blindly ...you tom yarnall....you follow the people that cause the problems and their only solution is to blame it on someone else...and you believe them, don't you tom...... cali has wind, sun, and sea ....we could have developed alternative energy resources years ago...but we have a political party that screams in rage at the thought of not being dependent on oil... ...and we have the other political party that says 'o'well, what can we do'... but it's not that the political parties are working together is it tom...no that's not it...your political party is good, their political party is bad....that's how it is in your head, isn't it tom...
Tom Yarnall October 9, 2012 at 06:52 pm
Libi, so Carter cut dependence on foreign oil by 50% and Reagan increased it by 100%? This sounds like an accounting trick you bean counters use to fudge the books. I'll just bet you are good at that.
The dependence on foreign oil has not changed that much under any president, starting in the 1970's. Before that our dependence was about 10%. Consumpion has driven it up to where we now need 45-50%.If we use 20 million barrels a day but only produce 10 the remainder has to come from somewhere else. Your diatribe is not becoming. Just do as Obama tells you and we'll all go to hell together.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
Dr. Michele Drake June 19, 2013 at 11:50 am
The benefit garage and bake sale is this Saturday, June 22 from 7 a.m. to noon at 1463 Golden SunsetRead More Drive in San Marcos (San Elijo Hills). Here's the link to the event: http://encinitas.patch.com/groups/events/p/drake-center-garage-sale-to-benefit-autism-therapy-dog_3a2145e8
Dr. Michele Drake June 19, 2013 at 11:50 am
All donated items can be dropped off at The Drake Center, located at 195 N. El Camino Real inRead More Encinitas.
Mary E June 19, 2013 at 04:01 pm
do you get a donation receipt for tax purposes?
Vicki Campbell June 17, 2013 at 04:42 pm
Prop A will help residents and stop greedy developers from buying city council. Vote YES
Rick Moore June 18, 2013 at 09:27 am
I wholeheartedly agree with the recommendation that folks read the initiative. When you readRead More sections 6 and 9, you will see that Prop A sets a 30-foot or 2-story ceiling across the entire city, overriding lower height limits in many areas. The Downtown Specific Plan limits residences to 22-26 feet, as detailed on the DEMA website, so Prop A would actually allow the building of taller homes. It makes no exemptions or allowances for historic buildings like La Paloma, church towers or other structures over 30 feet high; the only exceptions are medical complexes and public high schools (see clause 6.2). Rebuilding or renovating (more than 50%) would require expensive public votes. Should the SRF be required to pay for an election to rebuild the Lotus Tower? Such contingencies are allowed for in our Historic Overlay Zone, which would clearly be overridden by Prop A. So is the Encinitas Preservation Association's plan to convert one of the boathouses to a museum. Again, Prop A would require an election (see section 4.1, clause e), which the EPA cannot afford. Prop A would thus favor large developers who have the money, time, lawyers and other resources to campaign for their project. How many nonprofits and small businessmen can afford to spend a minimum $30,000 just to get their project on a general election ballot (upwards of $300,000 for a special election like this one)? Yes, folks, please read the initiative, especially Section 9, which lays waste to anything that conflicts with it. That's why this has been dubbed Propzilla. I trust that most Encinitas citizens are smart enough to see that this meausre is deeply flawed, problematic and counter-productive. We can find much better ways to limit growth and preserve community character.
BlueAngel2 June 18, 2013 at 10:20 am
SAVE ENCINITAS FROM RANCID DEVELOPERS. VOTE YES ON PROP A!
BlueAngel2 June 15, 2013 at 09:47 pm
It would NOT surprise me. I thought we dumped Stocks. Why is he still around?
Encinitas YES on A June 16, 2013 at 02:44 pm
My YES on Prop. A sign was stolen yesterday. Other YES on Prop. A signs are disappearing. YetRead More another deceptive and untruthful mailer from the opponents of Prop. A was in my mail box. There's a shrillness and desperation in their opposition. They can't rely on facts and fair play. Polling data not looking good?
BlueAngel2 June 16, 2013 at 03:17 pm
YES ON PROP A will be victorious!
BlueAngel2 June 8, 2013 at 11:20 am
It just goes to show if Stocks or any of his puppets are involved, you will not hear the truth aboutRead More this proposition. They continue to confuse the issue. Please do not throw your vote away to ruin our city and enhance the developer's pockets who do not care what they do to our beautiful Encinitas. Vote YES on PROP A!
Status Quo June 19, 2013 at 11:53 am
Looks very much like your Prop A will pass, though 'BA2's tactic seems to be part of the problemRead More also.
TB-ENC June 7, 2013 at 02:01 pm
How is this not a racist group with Hispanics in California at 14 million second behind whites atRead More 14.8 million. We only need one chamber to represent all Californians.
BlueAngel2 June 8, 2013 at 02:09 pm
So any group other than white is a racist group?
Miranda Klassen June 5, 2013 at 10:39 am
Congrats to all on the groundbreaking. Reesey has done an incredible job with making Lux what it isRead More today!
BlueAngel2 June 4, 2013 at 10:40 am
Vote YES on PROP A! The City Council is not experienced in real estate, zoning, construction orRead More development to make decisions for us.
CardiffCreature June 4, 2013 at 10:44 am
Prop A will not control growth. It will make sure that BOTH the council and the public get toRead More directly weigh in on the deals being brokered between big developers and the city. This won't end the indirect developer subsidies, but it sure will help.
Lynn Marr June 6, 2013 at 02:26 am
Yes, it will help to slow growth, by making sure that the public approves raising height limits orRead More upzoning, for developments over the parameters of a MAXIMUM of 30 ft. and two stories. Lower set height limits will not be repealed, because they are not in conflict with the initiative or the General Plan. David Ahlgren's fear and speculation is not backed up by one single fact. He just raises the usual building industry "mantra" of alleged risks created by unnamed "unintended consequences." Council's attempt at a preemptive ordinance does NOT guarantee that will be placed on the ballot in 2014, and does NOT eliminate other loopholes such as the "less-than-5-acre" exception, the "categorization of intensity of use" exception, and the height limit exception. The only loophole that Council's drafted ordinance affects is Council's ability to vote by a 4/5 supermajority on upzoing if it is done with respect to a "significant public benefit." Not only is Council's recently drafted ordinance NOT guaranteed, in that a future Council could reverse it, if it is not enacted through a public vote, but also Council's attempt at preempting the "right to vote on upzoning and raising height limits initiative" DOESN"T eliminate the other loopholes that still exist in our General Plan, Policy 3.12., which exceptions I've spelled out, here.