Slide 15 of 30
Notes:
- The spread picture shows some of the volatility that occurred last summer, but this retail chart highlights the regional aspects of that volatility.
- California has experienced large price swings since their RFG program began. The West Coast has little excess capacity, and any refinery problem or pipeline problem results in a large price swing until the supply can be re-established. The region is relatively isolated from any near-term quick supply infusions when anything goes wrong both because of its unique gasoline that not all refiners can make,and because of its geographic distance from other major refining centers like the Gulf Coast.
- Last year, the Midwest saw a California-like price swing during the beginning of the gasoline season. Very low stocks of all gasoline formulations, problems with the Explorer pipeline and the transition to Phase II RFG all combined to cause prices to rise much more in that region than in other parts of the country.
- Should consumers expect less dramatic price excursions this year?