California Drivers Are Finally Paying Less Than $4 a Gallon for Gas
(Bloomberg) -- California drivers can put $4 a gallon gasoline in the rear view mirror, at least for now.
The Golden State’s average retail price fell 1.6 cents to $3.995 a gallon Friday, according to auto club AAA, the first time the average slipped below the $4 threshold since Sept. 28.
As often happens, the shortage of fuel brought on by a slew of refinery upsets was solved from far away. A flotilla of cargoes arrived over the past few weeks from South Korea, Europe and storage terminals in the Caribbean, adding supply and bringing down wholesale prices that in Los Angeles had jumped to more than $1 a gallon over futures.
As of Friday, spot prices for California-grade gasoline were just 12.5 cents a gallon over New York futures contracts, the smallest premium since Aug. 22. Prices are likely to keep moving lower as refineries run harder and the drop in wholesale markets filters down to the retail level.
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