OUR LAST PREDICTION:
We said gas prices would climb two to six cents for diesel and RUL.
Prices will climb from two-point-five to seven-point-five cents for RUL,
and up 1 to 5 for diesel.
WHAT HAPPENED: Exactly what we predicted.
Gas prices climbed four cents on average, while diesel climbed three-point-five.
A flaring event (translation = flames shooting 100 feet in the air) at Tesoro's Golden Eagle Refinery in the bay area sent the bulls running toward higher prices over the weekend. The NYMEX spot market is up a nickel since our last report and locally the spot market for raw gasoline surged another 7 cents over the weekend since Thursday.
What's it all mean? Higher gas prices.
Right now our calculated break even for an independent dealer is about $3.08 a gallon, on average. Because that's well above the average price we are reporting today of $3.045 a gallon, it means that some dealers selling gas for less than $3.08 a gallon are giving it away for less than they can buy it. To clarify, this doesn't mean a dealer selling gas at $3.07 is necessarily losing money. Gas prices in California are redlined by the dealer's location and a dealer selling the same brand on one side of the street may have to pay a higher wholesale price than a dealer selling the same brand on the other side of the street. This is one of many techniques used by the oil industry to control and limit competition.