Nothing like micromanaging and overregulation to help a good ole' free market breathe and operate vibrantly.
California, already home to the highest gasoline prices in the U.S., is now bracing for another seasonal surge. The state’s energy regulator has cautioned gasoline traders that it is monitoring the market closely as refinery maintenance squeezes supplies.
In a letter to Governor Gavin Newsom last week, the Division of Petroleum Market Oversight pointed to both planned and unexpected refinery outages, noting that such disruptions are common in autumn—and that sharp price increases also hit in 2022 and 2023, Bloomberg reported this week.
Average prices at California pumps reached $4.66 per gallon on Tuesday, $1.48 above the national average. The state’s unique fuel blends, required under strict environmental rules, make it harder to secure alternative supplies when local refineries shut down. Over time, the industry has also reduced capacity in California, further tightening the market.
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