by Liza Tucker/California Progress Report
Who would want two companies, Tesoro and Chevron, to control more than half of California’s gasoline market? Only people, like oil company executives, who think paying five dollars a gallon should be the new normal.
That could happen, though, if a deal goes through for Tesoro to buy BP’s refinery in Carson and its low-cost Arco brand. In California, the ninth largest economy in the world, gasoline refineries have shrunk from 32 in the mid-1980s to just 14, owned by only a handful of companies. The more consolidated a market, the more tempting it is to make more money by producing and selling less gasoline. California’s gasoline market is so consolidated that it is now geared to shortages and scarcity, which is why a few refinery outages and some scheduled refinery maintenance can cause a price spike of the sort you should only see in the wake of a real disaster. [Read more…]











