California’s unique, more environmentally friendly gasoline blend is more at risk from global oil turmoil that and could send prices skyrocketing, experts have warned.
Golden State drivers already face thehighest gas prices in the country. Now, a combination of reliance on foreign oil, shutting domestic refineries and regulatory changes could make filling up an even more miserable experience.
To meet the state’s strict environmental requirements for reducing smog and other pollutants, California requires a special, cleaner-burning fuel blend known as California Reformulated Gasoline (CaRFG).
This blend is produced mostly byCalifornia’s dwindling supply of domestic refineriesand select Asian countries—including China, India, Saudi Arabia, Singapore and South Korea—adding an estimated 10 to 15 cents to the cost per gallon.
The ongoingcrisis in the Middle East, tensionsbetween China and Taiwanand saber-rattling fromNorth Korea’s dictator Kim Jong-uncould create a perfect storm, causing a spike in global and domestic prices.
“There’s one eye on Asia and one eye on the Middle East right now,” University of Southern California associate professor Mike Mischetold ABC10.
“Now, you have a major geopolitical event. This is not a little event. This is a big event,” he added, warning that California’s reliance on foreign gas imports was now poses a significant risk.
The state is losing about 20% of its domestic gasoline production due to the recent closure of the Phillips 66 refinery in Los Angeles andValero’s plan to cease operationsat its Benicia facility in April.
“Prices are already high in California because of taxes, but what if you can’t get the products that you need?” Chevron Global Refining president Andy Walz said, pointing out that his company’s Richmond refinery supplies 60% of jet fuel to San Francisco Airport.
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Source: California Post – Breaking California News, Photos & Videos
