SACRAMENTO - Faced with $5
per gallon gasoline, California Gov. Jerry Brown directed state regulators to
let refineries begin production of winter-blend fuel now, Bloomberg News
reports. California gas prices have soared 22% higher than the national average
in the past few weeks.
This week, the California
Air Resources Board gave approval to refineries to shift to making winter-blend
gasoline, which can be manufactured faster than the summer blend. Typically,
winter-blend fuel is sold after Oct. 31. The switch should bump California??s
fuel supply between 8% and 10%.
Because California lacks
access to oil pipelines available to other states, the state is dependent on
its own refineries. Retail prices started to climb when several refineries had
to lower production because of a fire, power failure and pipeline
contamination.
"This is probably going to
continue to recur because California has just enough refining capacity to
supply its demand, but only if everything is running well," said John R. Auers,
senior vice president at Turner Mason & Co.
Without less available
fuel, some stations shuttered
their pumps. For example, Costco Wholesale Corp. shut down its Southern
California stations because it couldn??t restock.