Why does CA have the highest gasoline prices in the country?

1. 53

   bradmasterOCcalposted 9 years ago

   Why does CA have the highest gasoline prices in the country?
   
   Only Hawaii has a higher price for gas.
   CA has the most people in the country, and the most number of cars and drivers in the country, so why should they pay more than the rest of the country.
   Only six states in the country have an average gas price above $2 a gallon.
   
   

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2. 72

   dashingscorpioposted 9 years ago

   
   
   When I lived there I wondered the same thing!
   Especially when you consider there are still active oil wells in places like Long Beach and Signal Hill. In any other business the biggest customer gets the best price.
   Hawaii is sort of understandable since oil/gas has to be shipped there. Even regular groceries are higher in Hawaii.
   Someone once told me part the reason why it's higher in  California is due to real estate prices. The land the gas station sits on factors into the cost of doing business .
   I'm not sure if that is a valid reason or not but out here in the Chicago area prices are higher in the city than they are in the suburbs or our neighboring state of Indiana. Where I live unleaded gas is between $1.29 & $1.49. This is especially so at Costco or Sam's.

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   1. 53

      bradmasterOCcalposted 9 years agoin reply to this

      average in CA $2.47 for regular.
      Years ago their anti smog additive was PCBA a known carcinogen, and today it is 10% of Ethanol, a less efficient fuel than gasoline.
      Also, CA taxes everything and gasoline tax is high.

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   2. 72

      dashingscorpioposted 9 years agoin reply to this

      Illinois also has 10% Ethanol as well.

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   3. 53

      bradmasterOCcalposted 9 years agoin reply to this

      I wonder how much the price of Coca Cola varies among the states, as it is as common as gasoline??
      Thanks

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3. 67

   MonetteforJackposted 9 years ago

   From what I know, it is because of EPA.  They have regulations on the kind of fuel/gas  California has a special formulation added on to gasoline so cars will be more environmental friendly and that means less smog.

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   1. 53

      bradmasterOCcalposted 9 years agoin reply to this

      Yes, it is called Ethanol??
      Thanks

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   2. 67

      MonetteforJackposted 9 years agoin reply to this

      I remembered there was an issue about Ethanol being bad for collectible cars. The fuel/gas in CA goes through rigid refining process making it costly to produce for use and they call their product CARB LFS CA Air Resources Board Low Fuel Standard.

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   3. 53

      bradmasterOCcalposted 9 years agoin reply to this

      Yes, I agree, and the problem is that while CA population has doubled in the last 30 yrs, there haven't been many new refineries. Supply and demand is controlled by the oil companies.
      Thanks

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   4. 67

      MonetteforJackposted 9 years agoin reply to this

      Even without new refineries, CA's refineries can still cope with the supply and demand. I guess it all boils down to corruption somewhere between the regulatory boards, politicos/lobbyists and just as you said, the oil companies.  Thank you.

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   5. 53

      bradmasterOCcalposted 9 years agoin reply to this

      Actually they can't, it happens many times during the years. A fire here, a change to the seasonal blend, and the ever increasing vehicles.
      But that could be part of the corruption that you mention.
      The same thing is true of our water supply. Thanks

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4. 83

   Dean Traylorposted 9 years ago

   EPA regulation is part of it; however, another major reason has to do with sulfur extraction from the oil pumped from California (California is actually a huge oil producer). Another problem (and I know this because I lived in Torrance near one of them) are the oil refineries that seem blow up from time to time. That usually spikes the price.

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   1. 53

      bradmasterOCcalposted 9 years agoin reply to this

      Yes
      Wilmington, and Torrance have the old oil fire. But, you also know that CA has high taxes as well.
      
      Thanks,

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