First off, geography is a big factor.
“The West Coast is kind of a ‘Petro Island,'” explained Patrick De Haan, head of petroleum analysis at GasBuddy. The Rocky Mountains cut off the West from the rest of the country, making it a tight and more secluded market.
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The first paragraph says it just not taxes, and down near the bottom it says Pennsylvania's gas taxes are higher.
Big deal - California has the second highest gas tax in the US, but they're trying to play it like it's not a major factor.
Then they forgot to mention California's regularly scheduled refinery fires. That seems to happen at least once a year.
Without reading the article, the other reason for California has higher prices is that that they have a different formula. The Environmental geniuses mandated the addition of MTBE. The geniuses thought they could be the tail wagging the dog and force all refineries to add it. The refineries said "no" -- and California's gasoline was more expensive from that time forward.
ReplyDeleteLet's not forget that MTBE pollutes ground water. The next set of Environmental geniuses attempted to sue the refineries for adding it. The judge threw the suit out, pointing out that it was the Environmental geniuses fault it was added. It still is required, even though they know it is bad for the ground water.
I'm glad the article didn't forget the special blends that the California Air Resources Board mandates, the 19¢ carbon offset fee paid at the pump or the carbon credits that the refiners are required to purchase, which cost is then passed on to consumers.
ReplyDeleteThen there's the 12¢ increase in the excise tax that voters approved (and a 20¢ increase for diesel) and the annual increase in the excise tax, based on the rate of inflation, that automatically kicks in every year.
Meanwhile, state legislators have their choice of vehicles they'll be given while they're in office and are given a state credit card to pay for their fuel. This while making $206 a day per diem.
This is in addition to being exempt from having to get the Clot Shot while their staffers are not.
I find it ludicrous that they aren't counting the carbon credits as taxes, because that is exactly what they are.
ReplyDeleteTry building a new refinery in Kali. The regulatory burden in that industry is insane thanks to Kali's CARB and the insane business regulations coming out of Sacramento. Kali has plenty of oil underground and offshore. But the greenies and other idiots don't want it pumped or refined. And the have an enormous say in Kali politics.
ReplyDeleteSo ponder aloud why gasoline is more expensive in California than Hawaii.
ReplyDeleteLast fillup was $4.27 reg unl. It jumped up from right under $4 about 2 weeks ago. People with gas guzzlers are fucked.
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