Explaining Southern California's economy

Southland gas prices: Are emotions cooling?

ARCO-397-MDB

Matt DeBord/KPCC

$3.97 a gallon north of Pasadena, CA early this week. Oh, those were the days! The average price in L.A. is now $4.10. But the climb has leveled off.

Yesterday, I talked to Patrick DeHann of GasBuddy.com about gas prices in the Los Angeles area. During the course of our conversation, he predicted that upward pressure on gas prices in the region, in the wake of the Chevron Richmond refinery fire, would ease. 

"Wholesale prices have already come down a bit as emotions have cooled off," he said.

Translation: Some of the uptick in prices we saw last week was based on fear, plain and simple. Now the market has figured out that it can still resupply itself, and that's caused prices to level off, at least for now.

Prices in the Southland still haven't cracked $5 — the most expensive gallon of regular gas remains $4.99. Will that barrier — which is emotionally important for consumers — be crossed in the coming days? We'll see.

Previously:

Map: Search for gas prices in L.A. Why do they vary so much?

Why is BP selling its refinery in Carson, Calif.?

After the Chevron refinery fire, gas prices in Los Angeles are rising fast

 

Follow Matthew DeBord and the DeBord Report on Twitter. And ask Matt questions at Quora.

blog comments powered by Disqus