If every time a gasoline refinery blows up in California the price of gas increases “because we use a unique fuel formulation only California refineries produce” then: Why will our prices go up dramatically as a result of Katrina?
If your answer is that oil production has been reduced, I can accept some of that increase. Oil is fungible and can come from anywhere in the world. Maybe some of our oil comes from the Gulf, however I expect the vast majority comes from Mexico and Canada. Maybe the Gulf States will purchase more oil from Mexico to offset their losses. But we are talking about 2 million barrels a day – a four percent drop, and not permanent. The oil rigs will not be damaged by the storm.
We will KNOW we are being gouged if the oil refining companies use this as an excuse for a 50-cent+ increase. We will KNOW we are being gouged if these companies decry the loss of refining capability in Louisiana.
We neither accept refined fuel from Louisiana, nor do we pipe refined fuel outside California’s borders.
If we see a big increase, than we have proof that capitalism is not at work in California fuel distribution.