Does 'winter blend' lower gas prices?

In the winter, oil refineries switch to a "winter blend," gas that evaporates easier as the demand for fuel is lower compared to the summer months. (Oct. 31, 2017)

Gas prices are still expected to go up Wednesday, despite a "winter blend" of gasoline that is cheaper to produce. 

In the winter, oil refineries switch to a "winter blend," gas that evaporates easier as the demand for fuel is lower compared to the summer months. And while this gas is cheaper to produce, that does not mean savings at the pump.

James Bushnell, economics professor at University of California, Davis, said there won't be an evening out of sorts between winter gas and Wednesday's 12-cent gas tax increase. 

"The fact costs go down in California doesn't translate necessarily to retail prices going down," said Bushnell. "It's not going to offset the gas tax." 

Gas stations receive loads of gasoline every other day or every day if they do a lot of business, such as Costco, so consumers can expect to see this 12-cent spike at the pump Wednesday. 

"When the new taxes go into effect tomorrow, everyone who receives a load tomorrow will see those new taxes," said Gordon Schremp, a senior fuels specialist with the state's Energy Commission. 

You might remember that the increase in the gas tax is to help pay for more than $50 billion in road repairs over the next decade. 

© 2017 KXTV-TV


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