Average LA, Orange County Gas Prices Record Largest Increases Since 2015
LOS ANGELES (CBSLA) - The average price of a gallon of self-serve regular gasoline in Los Angeles and Orange Counties recorded their largest increases since July 14, 2015, Friday.
The Los Angeles County average price rose 13.8 cents to $5.152 and the Orange County average price increased 14.5 cents to $5.135, according to figures from the AAA and Oil Price Information Service.
Thursday saw average prices across Los Angeles County sitting above $5.00 for the first time ever. In fact, Los Angeles County average price has risen 30 times in 33 days, increasing 48.3 cents, including 8.6 cents Thursday, setting records 26 of the past 28 days. It is 30.4 cents more than one week ago, 43.1 cents higher than one month ago and $1.383 greater than one year ago.
The Orange County average price topped $5 for the first time Friday, at $5.135, setting its 25th record in 30 days. It has increased 20 of the past 22 days, rising 41.3 cents, including 8.6 cents Thursday.
The Orange County average price is 30.8 cents more than one week ago, 42.9 cents higher than one month ago and $1.385 greater than one year ago.
Oil industry analysts point to a number of factors affecting the price spike, one of which is the current Crisis in Ukraine increasing the possibility of a supply shortage because traders, shippers, insurance companies and banks are avoiding Russian oil transactions for fear of running afoul of Western sanctions.
"I hate seeing these prices for my customers," said Chuck Mercier, the owner of Chuck's Corner Market in Burbank. "It's not what I want to see."
Experts do however, suggest that those looking for someone to blame make sure they leave gas station owners out of it.
USC Energy Industry Expert Shon Hiatt spoke with CBS reporters Friday, disclosing that, "This is a market issue, this is not price gouging. ... We simply do not have enough supply on the market, as we have demand."
Owners of gas stations across the Southland have been busy changing pricing over recent days, but that increase doesn't necessarily mean they're pocketing more - the cost for them to stock the pumps has also seen a noted increase.
"Our prices have gone up 60 cents in the last week. Our initial costs - there's about a $1.15 to $1.20 a gallon, and state, federal, excise taxes in the State of California - on every gallon," Mercier continued.
The end of the price spike is "largely dependent on world events and oil prices, as well as California's gasoline supply issues which often tend to occur in the spring months," said Marie Montgomery, a public relations specialist with the Automobile Club of Southern California.
Most of the world's oil comes from the Middle East, while United States produces nearly 11 million barrels of crude oil daily, OPEC Nations nearly triple that, with over 30 million barrels produced a day. Russia's output matches that of the United States, at just about 10 million barrels in the same time span.
Crude oil costs account for slightly more than half of the pump price, according to the U.S. Energy Information Administration. The rest of the price includes the other components of gasoline, production costs, distribution costs, overhead costs for all involved in production, distribution and sales, taxes and carbon offset fees in California paid by the refineries.
The price of a barrel of Brent crude for May delivery on the Intercontinental Exchange dropped $2.47 to $110.46 Thursday, one day after rising to its highest settlement value since June 27, 2014, $112.93. Brent crude is the global oil benchmark, accounting for approximately 80% of the world's crude oil.