Got gas?

Spitballers are having a conversation about the sudden spike in gas prices.

Overheard:

“Winter gas, which has chemicals that keep fuel more fluid in cold weather and reduces water, is always more expensive. When refineries convert from one type of fuel to another it creates a temporary supply shortage resulting in temporarily higher prices from refinery to retail outlet. What we need to stabilize and reduce fuel prices is greatly expanded refinery capacity, not marginal, but 40-50% more. Of course the environ-nazis are always throwing wrenches into the approval process.”

…

“I owned an aviation FBO. We changed prices with every load of Avgas or Jet-A we received. Some high volume gas stations get fuel every day, so price change is normal.”

…

“Gas is transitioning to winter blend now. Prices change just like in spring with summer blends. Then they tend to stabilize downward, if the price of crude remains stable.”

…

“There are only a few refineries and they can’t mix for a particular market for particular weather. They also have to move that fuel through pipelines which can get exposed to cold weather.”

…

“Cold? We don’t get cold like the other areas.  🤣🤣 The average low for central Texas is 40°, for about 2 months.   Yeah yeah…. it’s refineries that make it for everyone. I suspect the loss of refineries are part of the issue,  but it still shouldn’t swing like this.”

…

“An entire refinery switches. The same pipelines that service Texas also service colder climates. Fuel does not leave a refinery in a tank truck to a retail outlet.”

…

Another Spitballer wrote: “The prices that government jabbers about are not pump prices. They are bulk averages for trading purposes. Which are down considerably from Biden’s time on beach duty. Pump prices, however, are indexed regionally and by fuel types. Here’s some gov data. Location, taxes, etc are noted.”

Data source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update