California: Get ready for the big gouge at the pumps…………

OWNED_GAS PUMPAs reported in the Modesto Bee today:

In Modesto, Ca. price changes waited for Friday, bumping up 3 cents a gallon on average to $2.49, according to the website Even so, the average remained a penny below a week ago, when most motorists last filled up their tanks. A month ago, the price of a gallon of gas hovered around $2.86.

in Empire, Ca. prices jumped 10 cents a gallon Friday at the pumps at Fastrip by Empire Liquors, manager A.J. Shah said. “We have no control of gas prices. Fastrip decides what price they want to sell it,” Shah said Saturday.

Experts called this week’s uptick a subdued response to the state’s new requirement that oil companies buy credits to offset the carbon emitted by cars and trucks.

Wildly different predictions swirled in recent weeks for how much gas prices would rise when the industry was included in California’s cap-and-trade market. State officials and some environmentalists insisted California’s effort to combat climate change would cost travelers just a few cents a gallon.

Oil industry leaders raised fears of spikes as high as 75 cents or more a gallon. On Friday, the statewide experience was much like Modesto’s, a small bump largely masked by the steep decline in gas prices over the past year. National gas price tracker said the average retail price of gas in California on Friday was $2.64 a gallon, up 2 cents from New Year’s Day.

My personal opinion is that we are just seeing the tip of the iceberg here and there are many in the industry going to profit off these increases but all will try to deflect their responsibility and place blame on the new carbon emission laws.