California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

Gas prices jumped at the pump this week for the first time in a month, according to price
surveys. According to the Automobile Club of Southern California, gas prices are returning
to their normal springtime pattern of increases due to spikes in the price of wholesale gasoline.

Prices are going up because of the usual springtime factors: an increase in driving demand
as the weather gets warmer, and the typical supply issues caused when using winter-blend
to summer-blend gasoline to comply with air quality requirements.

The state Board of Equalization released numbers for the fourth quarter of 2008.  The numbers
illustrate the eleventh consecutive three-month period of less gasoline consumption in the state.
In the fourth quarter of 2008, Californians used 187 million gallons less than the fourth quarter
2007, which is a decline of 4.8 percent. For 2008, California gas consumption declined 4.1 percent,
a much larger decrease than the 1.0 percent drop in 2007.

Gasoline prices throughout California are higher than the national average and usually among the
highest in the nation. This is due in part to taxes and a state law mandating a special blend of fuel
to reduce polluting emissions thus the need for refining fuel twice before its use in California thus
only having limited refineries available to supply the state.

However, if it is any consolation, the Florida Business Minute is reporting the price of fuel to be
similar to California without the required special blend

I am Tim Johnson and this has been the California Business Minute.