California Gas Prices Pass $7 Mark
As gas prices continue their historical climb into the stratosphere, regular gasoline on Catalina Island in California hits an all-time high of $7.00 per gallon.
April 10, 2012
As I recently reported, gas and oil prices began to surge in the build up to war with Iran first by piercing the $4.00 a gallon mark.
Then came news that gas prices broke through the $5 a gallon mark in Los Angeles.
The inflated gasoline price contagion quickly spread to Washington DC at prices right down the road from the White House.
Now CBS news reports the United States has hit a new record high with the average prices of REGULAR unleaded registering a whopping $7.10 per gallon in California.
California Gas Prices Hit $7 Dollars A Gallon
Gas Prices On Catalina Island Pass $7 Mark
AVALON (CBS) — Catalina Island is known for many things… its picturesque scenery, seafood and hiking, to name a few. But what about high gas prices?
For the past two weeks, gas prices on Catalina Island have been an average of $7 a gallon.
Stacy Dizon, who works at the Santa Catalina Island Co.-owned gas station on Pebbly Road, tells CBSLA that a gallon of regular unleaded on Saturday was $7.03.
The gas station is one of two service stations catering to the island.
About 1.5 miles away, Ivan Hernandez at the city-owned Avalon Marine Dock says the price of regular unleaded is $6.90 a gallon, down 10 cents from Friday.
Tony Gomez, who works at La Paloma, has lived on the island for 15 years. He tells CBSLA that as of last week, the price of a gallon of regular unleaded was $7.10.
As Gomez explains, residents on Catalina Island pay on average about $2 more for gas as compared to prices on the mainland.
As for the cause of the spike in gas prices, residents say they expect prices to be higher since the fuel is barged in.
“It’s not uncommon to see unusually high gas prices in certain remote areas, but of course, $7 gas may be a new high point for almost anywhere in the U.S.,” Automobile Club of Southern California spokesperson Jeffrey Spring said. “It’s a reminder to all of us that this year has been very expensive at the pump for Southern California drivers.”
Prices will continue to rise through the summer with economists warning that the average price of Gasoline will be over $5 a gallon come memorial day.
Before anyone goes blaming this on Obama’s anti-drilling polices here is a quick fact check – Obama has increased US domestic drilling, the US is a net oil EXPORTER and we are still feeling the pain at the pump. Can you say FIAT?
FACT CHECK: The US Is A Net Oil Exporter And More Drilling Didn’t Drop Gas Prices
A statistical analysis of 36 years of oil production shows no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.
In another blatant example of how US politicians flat-out lie to the public to push the will of lobbyists and special interest groups a fact check of the GOP claim that “Drill baby drill” is the solution to high gas prices reveals the slogan is nothing more than baseless political rhetoric.
In fact, an investigation by the Associated Press into the claim has found that there is absolutely no correlation between U.S. gasoline prices and the amount of oil coming out of the U.S. oil wells.
The report, quoted below, reveals not only is there no correlation, but since 2009 domestic oil production has increased 15% while U.S. gasoline prices have surged from $2.07 per gallon to $3.58.
The the contrary, domestic oil production decreased steadily under the Bush administration and only increased after Obama took office.
Perhaps even more shocking in the same websites, LibertyWorks.com, that shows the chart above which clearly shows the decline under Bush and increase under Obama, had the audacity to imply that Obama’s domestic drilling polices are responsible for high gas prices by prominently displaying this chart.
While this is all clearly bad news for the US consumer be forewarned this is going to through one hell of a wrench into the engine powering the global economy.
High gasoline prices lead to inflation of prices in all kinds of goods and at these levels food is going to start disappearing off people’s tables and that never turns out well.
Speaking of the global economy, let’s just be glad we don’t live in Paris where gas prices are now above $10 a gallon.