Remember that downdraft in gasoline prices right before Christmas? That was a nice stocking stuffer for many Americans. I know I liked it and I don’t even have to commute. Indeed that was the first economic break the middle class had gotten in quite a while. And we can thank the Saudis for opening the oil spigots which ultimately drove the price of gasoline down.
We are now seeing another push down in oil prices, but to date we have not seen a commensurate decline in gasoline prices. So what gives?
BP recently shut down its largest crude-oil processing unit in the Midwest after heavy damage from a malfunction. Lipow said California gas prices are still feeling the blows from an explosion in February at an Exxon Mobil refinery in the Los Angeles area.
“It’s those two regions that have brought up the national average. We actually have more than adequate supplies as refiners are operating at historically high levels,” Lipow said.