Consumer Advocates Call Attention to Discrepancy Between Wholesale and Retail Gasoline Prices in L.A.
LOS ANGELES --- Consumer advocates and some energy analysts are calling attention to the major discrepancy between gasoline wholesale and retail prices, asking why prices at the pump remain so high in the Los Angeles area, according to an L.A. Times report.
LOS ANGELES --- Consumer advocates and some energy analysts are calling attention to the major discrepancy between gasoline wholesale and retail prices, asking why prices at the pump remain so high in the Los Angeles area, according to an L.A. Times report. Middlemen who buy and sell fuel on the wholesale market have seen L.A. gasoline prices decrease more than 50 cents a gallon in the past couple weeks. But that price drop hasn't been reflected in retail prices for consumers. Last Friday, for example, the wholesale gasoline price in L.A. was around $2.17 a gallon; that's roughly equal to a retail price of $2.77 a gallon after taxes and other costs. However, yesterday service stations in the city were selling self-serve regular for an average of $3.221 a gallon. Critics of the retail pricing have also argued that a few California refineries have cut production, speculating that the move may be a deliberate effort to keep wholesale prices high. "The California economy has been penalized by high gas prices for months, and now, when the opportunity comes for a brief window of significantly lower prices, the workings of the market are being frustrated," energy economist Philip K. Verleger Jr. told the Times. "The people who own refineries are doing everything they can to prevent [the declining wholesale price] from trickling down to the consumer." During a Times interview, Joseph Sparano, president of the Western States Petroleum Association, acknowledged "there seems to be a pretty wide gap between wholesale and retail" prices for gasoline. However, he said that retail prices were beginning to fall and the California fuel market was working the way it was supposed to. "When supply is up and demand is down, the market will seek an outlet so that they come back in balance," Sparano told the Times. "That's still a fact of life in a capitalist system." Gasoline supplies for the region have climbed more than 20 percent since mid-November. For most of last week, the cost of gasoline on the L.A. spot market for California's specialized fuel blend was more than a dime lower than the comparable price in New York. That's quite unusual. For years, L.A.'s wholesale prices have been well above the spot market in New York, the Times reported.
More Fuel

October Fuel Trends Show Diverging Gasoline and Diesel Prices
Get the latest fuel trends from October.
Read More →
Fuel Prices Surge in September | September Fuel Update
September brought major fuel price swings, including diesel crossing $6 a gallon. Here’s how gas and diesel prices changed throughout the month, and where they stood heading into October.
Read More →Turning Fleet Payment Data into Executive Insights
Ramel Lindsay of U.S. Bank Voyager discusses how fleets can transform payment and transaction data into actionable intelligence to reduce costs, improve oversight, and support executive decision-making.
Read More →
Why the IRS Raised Its Mileage Rate in the Middle of 2026
Fuel-price volatility drove the rare increase to 76 cents per mile, the fifth midyear adjustment since 2000.
Read More →
July Fuel Update: Prices Keep Rising in Light of More Conflict
Gas prices continue to rise as more and more conflicts do, too.
Read More →
Bob Adamsky on Fuel Volatility: "Don't Panic, Have a Plan."
When it comes to up and down fuel prices, Adamsky has a message for fleets: “Don’t panic.”
Read More →How Fleets Can Gain Control of Non-Fuel Spend
Fuel often gets the spotlight, but non-fuel expenses can have a major impact on fleet costs. Ramel Lindsay of U.S. Bank Voyager discusses how fleets can gain better visibility and control over these often-overlooked expenditures.
Read More →
Fuel is Just the Start: How Middle East Tensions are Driving Up Fleet Maintenance Costs
The Middle East conflict is doing more than pushing up fuel prices. It’s also raising the cost of key maintenance products your fleet depends on, from motor oil to tires to windshield wipers. Here’s what you need to know about this budget-busting situation.
Read More →
June Fuel Update: Prices Fall Below $4
Drivers are finally getting some relief at the pump. The national average gas price has dropped below $4 a gallon for the first time in months, with prices falling in 47 states as oil markets react to developments in U.S.-Iran negotiations.
Read More →
Study: How 2026's Gas Price Hikes Affect Different Vehicle Types
New data from iSeeCars reveals how rising fuel costs have affected different vehicle segments as gasoline prices climbed nearly 46% over the past four months.
Read More →