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To: bestintxas

These are all good reasons for the price to be higher than it should be. I would only urge you to think in terms of the last 9 months though.

What were the prices last November? What were they at the low in February/March? What are they now.

Any factors like the ones you mentioned that were in place in November wouldn’t be the root cause for the price spiking back up now.

Thackney did come up with two good reasons, and you mentioned one of them yourself.

California’s new Global Warming tax $0.10 cents per gallon.

California refineries that have had recent problems affecting the supply, and thus the cost.


70 posted on 05/22/2015 6:06:07 PM PDT by DoughtyOne (Conservatism: Now home to liars too. And we'll support them. Yea... GOPe)
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To: DoughtyOne

I live maybe an hour or so north of you, and the prices are about $3.20.

Part of it may have to do with the LA Basin.

But as soon as I get away from the west coast it drops considerably.

I have lived in CA for about 35 years now. That chapter is coming to a close as I type.

I am now out of the oil business so I can’t tell you what is happening right now. But my experience is that frequently, if you have a problem in two refineries at the same time, the prices spike. But since they haven’t really spiked that much in my area, I’m not sure what to say.

It does make a big difference that you can’t truck fuel in from out of state; it makes the fluctuations more pronounced and always higher. As soon as you get out of California, the picture is different. So while you blame the oil companies, just remember that they are pumping the oil just an hour from your home. And refining it an hour away. Every other state has gas substantially less, though they have to bring the oil in from great distances and in many cases don’t have a refinery. Same oil companies, same retailers. The difference is Sacramento.


72 posted on 05/22/2015 6:31:29 PM PDT by marron
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