Gasoline Tops $5 A Gallon in California

Gasoline prices are continuing to rise everywhere in the nation especially in California, which reports some parts of the city are already selling gasoline for $5 per gallon of premium fuel. In other parts, it varies from $3.30 to $4 per gallon.

Crude oil prices reached an all time high Wednesday topping $98 a barrel. The gas analysts are claiming the prices are going up because of worldwide rising oil demand. In California, the prices are usually higher than other parts of the states, but still this $5 a gallon gives a stern warning for the things to come.

The article reports that in the past few weeks the gas prices have gone up by 15 cents a gallon. In Oakland, the cost of premium gallon has topped $4 a gallon. A local California TV station KSBW found gas stations in Gorda, south of Big Sur, currently charging $5 per gallon for premium gas. This price is not found in other cities, but their prices are also rising and soon may reach the target with the pace the global fuel prices are rising.

In Salinas, the price was at $3.39 per gallon, in Santa Cruz it was $3.37 per gallon.

The Saudis and the middle men must be making large sums of profits from these high prices. Usually the oil and gas producers and the refineries sign a long term contract, their prices are fixed for a minimum 3 to 5 years, so there shouldn’t be this type of instability. They use various reasons to increase the prices.

Here also the prices have risen, I saw $3.05 this morning in North Carolina. Despite the high gas prices, the traffic remains the same, people are still using it the same way. These gas prices will definitely hurt the poor and middle classes.