San Diego gas prices fell again this week, down almost a nickel since last Friday at a current average of $3.03 a gallon. We expect this trend to continue through the holiday weekend, although the fire in the Gulf panicked the oil markets yesterday and sent some local gasoline wholesalers into a spree of irrational price hikes.

Update, September 2, 9:40 AM:  It should be noted that the drilling moratorium discussed in this article - the moratorium that Joe Barton thinks is "stupid," is temporary.

By Charles Langley - With Labor Day just around the corner, gas prices have actually declined significantly at the wholesale level. Since August 5, the average wholesale price for gas in Southern California has  dropped by 19¢ a gallon, yet retail prices have only fallen 5¢ a gallon on average.

What this means is that the discounts being passed on to retailers are not being passed through to consumers. In addition, the U.S. Department of Energy is reporting that nationally, the stores of refined gasoline in inventory are the highest since 1983.

"Too cold to start a fire. I'm burning diesel. I'm burning Dinosaur Bones" - Johnny Cash, Rusty Cage by Soundgarden - There is misconception that oil comes from dinosaur bones. It doesn't.

Southern California gas and diesel prices will likely surge another two to six cents over the weekend thanks to panic buying at the wholesale level in response to a flaring event at British Petroleum's Carson California.

The Washington Post is reporting an interesting factoid: Three out of four energy lobbyists have worked for the Federal Government.

Its an open secret that the United States Government Minerals Management Service is utterly corrupt. It's one case where the tools who operate the machinery of government are greased by a well-oiled energy lobby that's always eager to supply drugs, money, and sex to the government employees who regulate them.

UCAN's survey of local gas prices shows that prices for gas peaked on Friday at $3.14 a gallon and then dropped by 1.6¢ early this morning. Right now wholesale prices for gasoline are softening. In addition, the new "Swap Tax" on gasoline has now been imposed and incentives for dealers to draw down their supply of fuel to avoid an extra state mandated storage fee of 17.3¢ a gallon for any fuel in inventory at 12:01 AM on July 1, has passed ... kind of like a kidney stone.  More later.