Why is gas well over 5 dollars a gallon in California only?

[onecaliberal]

It’s nearly double the national average. We’re not even on Summer blend.

[Nictuku]

1. Because they can?

It is crazy.

I just did a check to see what gas prices are in Hawaii, and they are high, but California is even higher than Hawaii (which must have all its gas shipped in)

This is freaking crazy

[Think. Again.]

23. Bingo.

Yep, it's because the fossil fuel industry knows how car-centric California is and the fossil fuel industry sets whatever prices they want (and STILL get massive taxpayer subsidies).

Plus, maybe a little vengeance thrown in for the fantastic work Newsom is doing to fight CO2 emissions?

[HeartachesNhangovers]

35. Hawaii has one full-scale petroleum refinery to provide local transportation fuel.

Generally, refineries try to maximize production of gasoline, which tends to be the highest-value product, at the expense of diesel and jet fuel, which typically have lower demand. (Refineries can be designed and operated to maximize specific products from crude oil.) Hawaii is unusual because of all the airplane traffic, so that jet fuel production is maximized instead of gasoline.

[WheelWalker]

2. I'm guessing it's road taxes? Well over $4.00/ here in SW Oregon.

There are local gas taxes, as well, that contribute to wide variability.

[CentralMass]

6. The average for regular unleaded is $4.53 & 9/10's

[Thunderbeast]

27. Gas tax in California is 51.5 cents

Oregon tax is 38 cents which is the national average.

Average gas price is $3.60 nationally.

California $5.62
Oregon. $4.53

Taxes do not explain the pricing difference in either state.

[WheelWalker]

34. Thank you for the data and assessment.

Mine was a supposition, apparently unfounded. I don’t drive that much myself. A $20 bone gets me through a month.

[Voltaire2]

57. The road tax is the largest but not the only tax.

54 cents in state excise tax: among the highest in the nation
18.4 cents in federal excise tax
23 cents for California's cap-and-trade program to lower greenhouse gas emissions
18 cents for the state's low-carbon fuel programs
2 cents for underground gas storage fees
An average of 3.7% in state and local sales taxes

[inthewind21]

3. It's not

I just paid 5.29 for yesterday in Nevada.

[montanacowboy]

4. Come up to the Seattle area

it's been well over $5 gal for a long time. We pay really high gas tax here.

[onecaliberal]

12. It's been like that here for 2 years with very brief periods of going down.

[inthewind21]

16. Same

In Navada

[Mz Pip]

5. $4.89 in Plumas County CA

Higher in the Bay Area. Gas prices never really came down here.

[jeffreyi]

36. From north of Plumas Co.

[Mz Pip]

39. Hi back!

👋🏻

[maxsolomon]

7. plus-$5 in OR & WA

reasons:
1. higher taxes meant to discourage or mitigate use.
2. fewer refineries, tighter supply
3. less-polluting formulations required.
4. sticking it to the libs.

[IbogaProject]

8. And for comparison

It's 3.35-3.75 in NJ and slightly higher in NY, excepting Manhattan & downtown Brooklyn.

[chicoescuela]

9. Still only 6.39 here on the South Shore (Nevada) of Lake Tahoe. Such a deal

[msongs]

10. only 4.19 at honolulu costco nt

[maxrandb]

11. Because it's almost always over $5 in CA, BUT...

My daughter lives there and I visit a lot. She makes 4 times more than someone working a similar job in Alabama, lives in just about the most beautiful state in the country, has access to state parks that would put other states parks to shame, enjoys a great quality of life with good schools, great roads, sparkling environment, enjoys comprehensive, protected reproductive rights and is not surrounded by inbred, mouthbreathing MAGAs.

$5 gas is a small price to pay IMHO.

[onecaliberal]

14. I was born a raised here. I've lived here my entire life.

Before COVID it would go up but it’s gotten out of hand and doesn’t go back down. When we are paying national high prices for housing it’s not a fucking deal.

[inthewind21]

22. It's NOT

Just in California.

[MichMan]

28. The wealthy never have a problem paying for gas like the working poor do.

[DURHAM D]

13. Google "California user tax on gasoline"

For every gallon of gas in California, we pay:

54 cents in state excise tax: among the highest in the nation
18.4 cents in federal excise tax
23 cents for California's cap-and-trade program to lower greenhouse gas emissions
18 cents for the state's low-carbon fuel programs
2 cents for underground gas storage fees

[miyazaki]

15. CA uses its own unique blend. Been this way for decades. nt

[onecaliberal]

18. We are NOT on summer blend now. As my OP said.

So no. It should have gone down some.

[miyazaki]

20. Unique from the rest of the country. All the time.

[yagotme]

61. Remember Katrina?

Lot of refineries were shut down in that area. Gas was almost non-existent in several states, because each state has it's own particular "blend". The govt dropped the requirements for various blends, so gas from refineries not affected by Katrina could be shipped to these states.

[onecaliberal]

62. Yes, we have periodic shut downs for maintenance. Zero of these things explain why it is

consistently much higher than most places. Combine this with the cost of housing. Something needs to be done to rein in the oil cartels.

[yagotme]

65. Elsewhere in this thread, someone stated that some refineries in CA

have been shut down for maintenance. If true, then CA may have to import gas, which costs extra $. CA has had an increase in drivers, haven't they? More drivers, more gas, higher strain on refineries. Any new refineries built to handle the increase? Probably not. Summer/winter blend switchover always jacks up prices temporarily, too, so you may have a perfect storm there.

ETA: 1982 was last refinery opening.

[onecaliberal]

66. I posted a link from our state that explains nicely in this thread.

[rollin74]

17. Expensive here in Nevada too

[tinrobot]

19. Higher crude prices, less refining capacity, market speculation

Lawmakers created the division to watch over oil markets for possible illegal activity and granted its recently appointed director, Tai Milder, access to new internal market information. Based on that data, Milder pinned the recent price spike on three factors:

▪ An increase in global crude oil prices due primarily to Russia’s invasion of Ukraine.

▪ Decreased oil supply due to in-state refinery outages and maintenance.

▪ A single, isolated trade on California’s real-time “spot market” for gasoline that quickly caused a 50-cent-per-gallon price spike.

In a letter to Gov. Gavin Newsom, Milder called the single transaction “unusual” and said it may be a result of the underlying structure of California’s gasoline market. He also criticized refiners for failing to maintain adequate inventories of refined gasoline.

Read more at: https://www.sacbee.com/news/politics-government/capitol-alert/article279657054.html#storylink=cpy

[Think. Again.]

25. You do realize...

...that those "reasons" for higher gas prices (crude pricing, oil supply, refinery management, I don't know anything about "spot market&quot are all things controlled by the same band of companies that set the price for gasoline, right?

I'm just going to start calling it the "fossil fuel cartel" instead of industry.

[TheProle]

26. Also

https://www.marketwatch.com/story/70-chance-israel-hamas-war-spreads-beyond-gaza-threatening-oil-strategist-warns-69ae7b8e

[onecaliberal]

30. From the state

Isolated Nature of the California Fuels Market
Under normal conditions, California refiners produce enough gasoline to meet demand inside the state. California refineries also export gasoline. When needed, the state typically imports gasoline via marine shipments, which usually take three to four weeks to deliver. The state’s prices must rise to secure these international imports via marine vessel to cover the additional delivery costs.

As a result of the state’s isolated fuels market, unplanned refinery outages requiring maintenance can significantly impact the state’s gasoline supply, usually resulting in temporary price spikes.

The spikes are no longer temporary!


https://www.energy.ca.gov/data-reports/energy-almanac/californias-petroleum-market

[ripcord]

21. Because California has a more responsible environmental policies than other states

Much of it funded through gas taxes.

[Johnny2X2X]

29. Bingo

The true cost of gas is more reflected in the price in CA.

I’m other states the true cost is deference to the tax payers and future generations.

[Celerity]

43. +1

[Angleae]

24. Transportation costs plus state taxes.

The further away from Houston, the more expensive gas gets.

[onecaliberal]

31. According to the state we make most of our own. N/T

[Blue Owl]

32. Something's weird

Where I live, it's around $3.64/gal but I drove 30 miles outside of town and it was $2.98/gal -- weird!

[Jose Garcia]

33. $3.19 in Florida

[Polybius]

37. $3.39 near me

In NYC no less.

[Emile]

38. Two words "Predatory Capitalism"

[Zeitghost]

44. Then are we to believe

The gas stations/refineries in other states are just being nice?

The issue is taxes and the cost of doing business in California.

[Emile]

45. California state gas tax rate is 77.9 cents per gallon. Predatory

Capitalism is to blame for the high gas prices, not taxes!

[Jose Garcia]

49. Why is there so much capitalism in CA compared to other states?

[Emile]

50. I guess the powers to be who want to make Joe Biden's

term look like he is having run away inflation, hate California? Just a guess.

[Jose Garcia]

51. How would that benefit 'the powers that be,' as CA is

a solidly blue state. Wouldn't it make more sense to do so in swing states like PA, GA, WI, or MI?

[Emile]

52. They have, they been doing it nationwide.

[Jose Garcia]

53. Gas is much cheaper in most other states

CA has the most expensive gas, by a lot: https://gasprices.aaa.com/state-gas-price-averages/

[Emile]

54. I know.

[tritsofme]

55. lol, don't go and let facts get in the way of a good conspiracy theory!

How rude for this early in the morning!

[Emile]

58. Gas tax vs gas prices

Gas tax California 77.9 cents per gallon Pennsylvania 57.6 cents Georgia 31.2 cents Wisconsin 30.9 cents Michigan 28.6 cents Illinois 39.2 cents

Gas prices

California $5.62 Pennsylvania $3.76 Georgia $3.37 Wisconsin $3.24 Michigan $3.91 Illinois $3.61

[Zeitghost]

69. I understand now

It's not your lack of understanding of basic economics, it's kooky conspiracy theories.

[Emile]

70. Careful there.

[hunter]

40. Who cares? Just don't buy it.

Wait, you are FORCED TO BUY GASOLINE?



I thought this was a free country!

Seriously, we need to start rebuilding our cities, turning them into attractive affordable places where car ownership is unnecessary.

Here in the U.S.A. you often have to pay a premium to live in neighborhoods like this. Many of these pleasant neighborhoods were built before car ownership became mandatory.

Our automobile culture was a huge mistake.

[onecaliberal]

41. I don't drive far for work but there is no public transportation here.

[hunter]

42. Public transportation is just one thing we need to fix.

We know it's possible to build cities where automobile commutes are rare because there are many modern cities all over the world where it is possible to live very comfortably without a car.

[onecaliberal]

63. I'm too old and have to carry too many things to ride a bike or do anything but drive. I never said

it wasn't possible.

[ecstatic]

46. Especially with all the oil drilling off the California coast

I don't know but I assume it goes towards taxes. California is the closest we have to a completely independent state, and soon they may even have single-payer healthcare. They have a lot more laws that protect their citizens while other states do not take the same precautions.

[moonshinegnomie]

48. the number one reason is califirnia requires different gas from the rest of the country

gasoline in california is like electricity in texas. if theres a problem they cant just flip a switch and get supplies from other states.

california requires a type of gasoline called California Reformulated Gasoline. if there is any reduction in supply from refinery shut towns or maintenance that causes a price spike.

evidently there are currently outages at couple of refinerys that caused gas prices to spike

[Voltaire2]

56. California does what every state and the federal government ought to be doing

Last edited Tue Oct 17, 2023, 10:12 AM - Edit history (1)

which is putting a carbon tax on fossil fuels in addition to the road use tax as a disincentive to using fossil fuels and an incentive to use public transportation and alternative fuel vehicles.

CA gas is always about $1 higher than states with just a road tax.

The fact that we still aren't taxing carbon everywhere is stunningly stupid.

[CoopersDad]

59. Best answer

Nailed it.

[onecaliberal]

64. Yes, yay us. The carbon tax still doesn't make it add up.

[Voltaire2]

74. Here is the breakdown

54 cents in state excise tax: among the highest in the nation
18.4 cents in federal excise tax
23 cents for California's cap-and-trade program to lower greenhouse gas emissions
18 cents for the state's low-carbon fuel programs
2 cents for underground gas storage fees
An average of 3.7% in state and local sales taxes

[onecaliberal]

75. Yup, it is posted upthread. Does not account for more than 2 dollars.

[MichMan]

76. Which is 40% of the cost of a $5 gallon.....

[onecaliberal]

77. I paid 5.89 yesterday. Last filled up a month ago its was 5.69.

Same price as is August give or take a dime. We’ve switched over blends and no major maintenance is happening now. It’s gouging period.

[Model35mech]

60. $2.95 in Milwaukee area for the past 5 days.

I think this is gas that is somehow 'watered down'.

I keep close surveillance on gas milage and usually get around 43 mpg. In the past few days, since using this cheap gas I'm averaging around 39 mpg, which nonetheless is great compared to the farm pick-up that we now only use for errands needing the carrying capacity of the truck box.

[Arthur_Frain]

67. I'm visiting family in CA this week. Saw it for $6 at one station along the highway

They do because they can. Never mind that it seems like every third car is a Tesla, including the 18 wheeler (diesel, btw, what’s wrong with this picture?) hauling a fleet of 7 brand new ones. The sheer number of people down here who have decided the only way to travel is pov’s just keep buying that gas. Most of the vehicles on the road? Only the driver.

20 years ago when I visited, it seemed like every third car was a Prius. There are no Priuses on the road this trip, not one. Not a durable vehicle? Wha’ happen?

I travelled from Santa Rosa to Arroyo Grande yesterday afternoon, the speed limit varied between 55-65 depending on where I was. I traveled at 80 mph most of the time just to avoid being an impediment, and still spent most of my time getting passed in the slow lane.

Like my mom, the smoker whose health has deteriorated to the point where the perfectly obvious and undeniable what exactly is occurring and what the cause is, but she keeps stepping out for another cigarette. Everybody else is aghast, but you can’t stop her.

Addiction comes in a lot of forms. Drugs. Speed. Social media. Money. Petroleum and everything that comes with it is one that, like my mom with her nicotine, you’re just not going to have success telling people they should stop.

[onecaliberal]

68. I don't live along the highway.... Good lord.

[Arthur_Frain]

71. This was just the 101 mind you

I can’t hang on 5 anymore.

[marmar]

72. I paid $2.99 yesterday in Dearborn, MI (suburb of Detroit) .....

.... and Michigan has a relatively high (6th in the country) gas tax.

[Emile]

73. +1

[SYFROYH]

78. $3.065 in Georgia on average. It's been going down for the last month.

There are a lot of good things about living in CA, but the taxes and costs can be difficult.