Many California residents are wondering why gas prices in the state are skyrocketing again. An energy expert explains what's happening and if there's any relief in sight.
In Los Angeles County, the price for a gallon of gas jumped 16 cents overnight and about 70 cents in the last week."Today there are four major refineries that are offline in California. Three for regular maintenance and one because of an upset, and that gasoline is not getting to market," said Ed Hirs, an energy fellow at the University of Houston.In addition, Hirs said California produces almost 1 million barrels of oil a day.
He said no one regulates gas prices, so if suppliers and retailers are paying more to refuel their tanks, that price is more than likely being passed onto drivers. "Shell doesn't own gasoline stations, Exxon doesn't own gasoline stations, Chevron, Unocal -- they don't own the gasoline stations that you and I use to fill up," Hirs said. "These are owned by entrepreneurs or by groups of companies. Sometimes by private equity firms and they can raise prices very liberally because -- simply because -- they can."But, a state-by-state breakdown shows California residents are feeling the pain at the pump the most.
Hirs said gas prices may continue to go up because of Hurricane Ian as supply is redirected to help areas affected by the storm.
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