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\f0\fs24 \cf0 >> Joanne: IF YOU FILLED UP YOUR\
GAS TANK IN THE PAST FEW DAYS\ YOU PROBABLY GOT A BIT OF A\
SHOCK.\ ACCORDING TO FUELTRACKER.COM.\
SAN DIEGO GAS PRICES ARE THE\ HIGHEST IN ANY FEBRUARY FOR\
\page COUNTY HISTORY.\ JOINING ME TO TALK ABOUT WHY\
PRICES HAVE ESCALATED IS CHARLES\ LANGLEY.\
UCAN REPRESENTATIVE.\ THANK YOU, CHARLES.\
>> THANK YOU.\ >> Joanne: WE KNOW PRICES HAVE\
GONE UP AS MUCH AS 20 CENTS A\ GALLON IN THE PAST WEEK.\
HOW DO WE COMPARE IN SAN DIEGO\ TO THE REST OF CALIFORNIA.\
>> $4.11 A GALLON.\ IT'S UP 3 CENTS IN THE LAST FEW\
HOURS.\ WE SEE THAT IN A WESTBOUND\
NORMALLY.\ THAT'S OVER NIGHT.\
RIGHT NOW WE'RE AT PARODY WITH\ L.A.\
THEY'RE PAYING $4.11 A GALLON\ AND A LITTLE LESS THAN SAN\
FRANCISCO.\ >> Joanne: WHY IS THIS HAPPENING\
NOW?\ >> THIS IS A TIME OF YEAR WHEN\
REFINERIES BEGIN SHUTTING DOWN\ AND RETOOL TO BURN A CLEANER\
FORMULATION OF GASOLINE TO\ COMPLY WITH FEDERAL AND STATE\
POLLUTION CONTROL LAWS.\ THIS IS A TIME OF YEAR WHEN\
PRICES TEND TO CREEP UP.\ LAST WEEK WE SAW TWO REFINERIES\
SHUT DOWN FOR PLANNED\ MAINTENANCE WHEN THEY DO THIS,\
THIS CREATES A SHORTAGE ON THE\ STOCK MARKET FOR SURPLUS FUEL.\
THAT MEANS OTHER STATIONS, THE\ MOST COMPETITIVE IN THE MARKET,\
THE UNBRANDED GUY CAN'T GET\ THEIR FUEL AT A CHEAPER PRICE.\
THEY'RE ELIMINATED FROM THE\ MARKET.\
THE PRICE FOR ALL OF THE OTHER\ PLAYERS GOES UP.\
THE REFINERIES START TO RAISE\ THEIR PRICES.\
IT'S VERY PROFITABLE FOR THE\ REFINERIES.\
\page THEY HAVE TO SHUT DOWN BRIEFLY.\ THAT'S UNPROFITABLE BUT ON THE\
WHOLE IT'S TREMENDOUSLY\ PROFITABLE.\
THEY CAN RATCHET PRICES UP BY\ CREATING SHORTAGES.\
>> Joanne: THIS SEASON, I\ STARTED OFF SAYING THIS IS THE\
HIGHEST PRICE IN FEBRUARY ON\ RECORD.\
WHY MORE SO THIS TIME OF YEAR\ THAN PAST YEARS?\
>> WELL PART OF IT IS WE'RE\ GOING INTO THE YEAR WITH VERY\
HIGH OIL PRICES.\ PART OF IT IS WE HAVE SEEN THIS\
SUDDEN INCREDIBLE PRICE SPIKE.\ SO, OIL IS TEN DOLLARS MORE A\
BARREL THEN IT WAS THIS TIME\ LAST YEAR.\
IT MIGHT BE $15.\ IT MOVED UP ANOTHER FIVE\
YESTERDAY.\ THAT'S CONTRIBUTING AND WORTH A\
FEW PENNIES.\ PRIMARILY THE PROBLEM IS WE\
DON'T HAVE A COMPETITIVE\ REFINERY ENVIRONMENT AND\
DISTRIBUTION NETWORK IN\ CALIFORNIA.\
AS LONG AS WE HAVE A HANDFUL OF\ REFINERIES WITH LITTLE\
COMPETITION WE WILL SEE THIS\ RESTRICTION.\
IT DOESN'T MATTER HOW CHEAP OIL\ S HOW BIG THE BUCKET S THEY'RE\
STILL ABLE TO GAME THE MARKET\ AND DRIVE UP PROFITS FOR\
THEMSELVES AND PASS ON THE PAIN\ TO CONSUMERS.\
>> Joanne: WE'RE SEEING MORE\ EXPORTS FOR CALIFORNIA FROM\
THESE REFINERIES ?\ >> YES.\
THIS IS NEW.\ THEY ARE PRODUCING TOO MUCH\
FUEL.\ TOO MUCH FUEL IS UNPROFITABLE.\
THEY'RE EXPORTED 55 BARRELS A\ DAY FROM THIS STATE TO SOUTH\
\page AMERICA, NEVADA, OTHER STATES.\ >> Joanne: DO YOU THINK WE COULD\
SEE GAS AT $5 A GALLON?\ >> I THINK IT'S POSSIBLE.\
I THINK WE HAVE TO SEE A SUPER\ SPIKE IN THE PRICE OF OIL.\
A LOT OF ANALYSTS ARE PREDICTING\ THAT.\
I THINK THEY'RE LOOKING INTO A\ CRYSTAL BALL THAT'S VERY, VERY\
MURKY.\ >> Joanne: THERE ARE SOME PEOPLE\
WHO ARGUE WE DON'T PAY ENOUGH\ FOR GAS, WE HAVE A RELIANCE ON\
GAS AND DRIVE CARS TOO MUCH.\ ESPECIALLY IN CALIFORNIA.\
IN EUROPE, OTHER COUNTRIES,\ CANADA IT'S MUCH MORE EXPENSE\
SIEVE.\ MAYBE WE'RE APPROACHING WHAT WE\
OUGHT TO BE PAYING.\ >> IN THOSE COUNTRIES GASOLINE\
IS TAXED AT A HIGHER LEVEL.\ WE PAY ABOUT 60 CENTS A GALLON\
ON GASOLINE.\ IT'S SUPPOSE TO GO TO ROAD\
CONSTRUCTION AND TINS LIKE THAT.\ IN EUROPE IT MIGHT BE $3 TO $4 A\
GALLON.\ IT'S A HUGE DIFFERENCE AND\
POLITICAL DECISION.\ >> Joanne: IS THERE ANYTHING\
PEOPLE CAN DO?\ THEY CAN BE ANGRY, BUT THE\
BOTTOM LINE IS THEY NEED GAS IN\ THEIR VEHICLE.\
IS THERE ANYTHING THEY CAN DO\ ABOUT IT?\
>> PEOPLE NEED TO UNDERSTAND NO\ MATTER THE OIL WE EXTRACT\
NATIONALLY IT'S VERY EXPENSIVE\ TO GET IT DOMESTICALLY.\
IT'S $50 TO $75 A BARREL TO GET\ IT OUT OF THE GROUND.\
THEY'RE EXTRACTING IT FROM SHALE\ AND TAR SANDS.\
THEY HAVE TO SHIP IT THROUGH\ PIPELINES THAT DON'T EXIST YET.\
IT'S EXPENSIVE STUFF.\ YOU COMPARE THAT TO MIDDLE\
\page EASTERN OIL.\ IT COSTS MAYBE $12 A BARREL TO\
GET IT OUT OF THE GROUND.\ THIS IS THE END OF CHEAP OIL.\
YES, THERE IS A LOT OF OIL IN\ THE GROUND.\
THAT DOESN'T MEAN IT'S GOING TO\ BE CHEAP.\
WE'RE NOT GOING TO SEE IT $2 A\ GALLON ANYTIME SOON IF EVER AS\
SOME POLITICIANS PROMISE.\ RIGHT NOW THE PRICE OF THE OIL\
IN A GALLON OF GASOLINE IS $2.20\ A GALLON.\
>> Joanne: CHARLES LANGLEY, WE\ HAVE TO LEAVE IT.\
THERE THANK YOU FOR BEING HERE.\ >> MY PLEASURE.\
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