Calif. gas prices hit all-time high

Associated Press Modified: October 7, 2012 at 3:30 am •  Published: October 7, 2012
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LOS ANGELES (AP) — The price of gasoline rose to an all-time high in California and is expected to continue climbing before leveling off later this week.

The record of $4.6140 for a gallon of regular unleaded was set on Saturday, just by a fraction of a penny over the previous high of $4.6096 on June 19, 2008, according to AAA spokesman Michael Green.

Saturday's price was the highest in the nation, with the Golden State leapfrogging Hawaii this week as the state with the most expensive fuel due to a temporary reduction in supply. In some locations, fuming motorists paid $5 or more per gallon while station owners had to shut down pumps in others.

"I seriously thought it was a mistake on the sign when we pulled in," said Nancy Garcia, 34, while filling her Honda Accord at a Chevron station in the Los Angeles neighborhood of Highland Park. She paid $4.65 a gallon for regular grade and said she couldn't afford to fill her tank all the way.

AAA's Daily Fuel Gauge report said the national average Saturday was about $3.81 a gallon, the highest ever for this time of year. However, gas prices in many other states have started decreasing, which is typical for October.

The dramatic surge came after a power outage Monday at a Southern California refinery that reduced supply in an already fragile and volatile market, analysts said, but the refinery came back online Friday and prices were expected to stabilize by next week.

Patrick DeHaan, senior petroleum analyst at GasBuddy.com, predicted the average price could peak as high as $4.85.

"There is some relief in sight but probably not for a couple of days. Early next week is when we may see some more significant declines ... but at retail prices, prices may climb for the next two to three days before they start to come down," he said.

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