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Rising California Gasoline Prices Highlight Growing Divide in U.S.
Wall Street Journal ^ | October 23, 2019 | Amrith Ramkumar

Posted on 10/24/2019 6:12:49 AM PDT by karpov

The price at the pump was more than $4 a gallon in Vista, Calif., when Scott Hissem recently embarked on a trip to Texas to celebrate his 40th birthday. When the delivery associate for Amazon.com Inc. arrived in the Lone Star state, he got an unexpected present: Gasoline cost just $2 and change.

The gap has Mr. Hissem considering a move to escape California’s high cost of living.

“It makes life hard,” Mr. Hissem said of California, which is the most populous U.S. state and the one with the highest gasoline prices. “You can’t go out and do the things you want to do.”

Mr. Hissem’s journey highlights an unpleasant truth for many Americans, even at a time of abundant global oil supplies: Regional differences in taxes, environmental rules and access to energy infrastructure can translate into large seasonal swings in gasoline prices.

Prices have surged this fall in California and other West Coast states following outages at several refineries in the region. Analysts said the coast is generally vulnerable because of its limited pipelines and refineries that turn oil into fuel products such as gasoline. Higher gas taxes in some states aiming to fund local infrastructure projects and varying pricing strategies by energy companies also drive gaps.

The volatility isn’t an isolated event. The standard deviation of gas prices—a measure of how much each state’s price varies from the national average—has hit its highest level this year in data going back to 2005, according to price tracker GasBuddy. The figure has risen in each of the past three years.

Refineries often shut down at this time of year because gasoline demand tends to fall seasonally and refiners start making a different grade of gasoline for the winter, but unplanned maintenance issues can roil prices in coastal regions.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; US: California
KEYWORDS: bluezones; california; energy; fuel; gasoline; gasprices; gavinnewsom; redstatesvbluestates; warrenbuffett
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1 posted on 10/24/2019 6:12:49 AM PDT by karpov
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To: karpov

And right on cue, Gavin “Hugo Chavez” Newsome is blaming the oil companies for gouging and criminal behavior, as he similarly blames PG&E for criminal neglect of the infrastructure and power outages. Conveniently, no mention of the corrupt policies to siphon off PG&E revenues for “green energy” and electric car subsidies and other nonsense.

Newsome/Democrats do this as true Socialists who enact insane policy and then blame the industry for the expected outcome of the Socialist’s policy dictates.


2 posted on 10/24/2019 6:19:17 AM PDT by Obadiah
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To: karpov

Life in Bizzarofornia.


3 posted on 10/24/2019 6:20:32 AM PDT by ImJustAnotherOkie (All I know is The I read in the papers.)
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To: karpov

I don’t know if this is still true, but the state of CA at one time allow counties to dictate the “mix” (e.g., ratio of ethanol to gasoline) of distillate fuels in their county. As a result, refineries had to supply these different blends to different countries, completely erasing any possible economies of scale that might be had. Just another example of how CA just can’t think straight.


4 posted on 10/24/2019 6:20:46 AM PDT by econjack
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To: karpov

He’ll be welcome as long as he doesn’t bring proven failure Calipornia political ideas to Texas. California is Venezuela coming, and sooner or later we’re going to come to the conclusion that the wall would be better located around that state of crap.


5 posted on 10/24/2019 6:21:49 AM PDT by Da Coyote (is)
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To: karpov

Yeah but the people there voted for this. For the ones who didn’t I feel sorry for, but that’s elections there. The majority of people there want their own personal Venezuela.


6 posted on 10/24/2019 6:24:24 AM PDT by GrandJediMasterYoda (As long as Hillary walks free, equal justice under the law will never exist in the USA)
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To: karpov

Gee, and you would think all of those “green” electric cars would have brought the price of gasoline down in CA.

SUCKERS!


7 posted on 10/24/2019 6:26:02 AM PDT by unixfox (Abolish Slavery, Repeal the 16th Amendment)
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To: Obadiah

He’s an idiot. How can they be “gouging” when the national average is $2.60 a gallon? If it’s high it’s absolutely because of the taxes and the 20 billion regulations him and his fellow LeftoNazis instill on the mom and pop gas stations. I cannot believe after the hell of Jerry Brown the people there would once again vote in another LeftoNazi.


8 posted on 10/24/2019 6:27:13 AM PDT by GrandJediMasterYoda (As long as Hillary walks free, equal justice under the law will never exist in the USA)
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To: karpov

My sister paid $2.09 for gas in Tulsa yesterday


9 posted on 10/24/2019 6:29:07 AM PDT by Vendome (I've Gotta Be Me https://www.youtube.com/watch?v=BB0ndRzaz2o)
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To: karpov
I recently visited Cambria California. This is a wealthy white area just south of Big Sur. People didn't mind the high prices, most of them had high incomes and drove hybrid cars. Very diligent about conserving water.

Of course it is different for the working people of California. Very expensive to fuel up your pickup.
10 posted on 10/24/2019 6:30:26 AM PDT by olepap
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To: karpov

Children and minorities hit the hardest.


11 posted on 10/24/2019 6:31:36 AM PDT by TheDon (MAGA!)
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To: karpov

California gas prices are higher than others because of some key factors :

1. Environmental regulations relating to refining gas, which adds cost.

2. California state gas tax is about 60 cents a gallon, I believe? It keeps going up, but the state gas tax is among the highest in the country.

3. Unlike most states , California charges sales tax on gasoline, on top.of all.other costs, which is good for about 20-30 cents a gallon, depending on the locality sales tax rate.

4. California started a global warming tax on gas a few years ago, as part of efforts to fight global warming.

This is just off the top.of my head, but I recall seeing this sort of review done a few years ago. I’m sure there is some documentation online regarding these.

So it’s not price gouging and it’s not a hidden mystery as to why gas prices are higher in California.


12 posted on 10/24/2019 6:42:57 AM PDT by Dilbert San Diego
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To: olepap

California is becoming a third world state—the rich, the poor, and almost no remaining middle class.

That is the way the rich lefties like it!


13 posted on 10/24/2019 6:44:07 AM PDT by cgbg (Vote Trump or you will _be_ Trump)
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To: TheDon

They move out and ruin the states they move to...the country is toast


14 posted on 10/24/2019 6:44:24 AM PDT by Hojczyk
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To: cgbg

True. My rich liberal friends are snobby and virtuous. They think I am a wild animal


15 posted on 10/24/2019 6:46:41 AM PDT by olepap
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To: karpov

But they’re safe from straws...and have lots of lovely sh!t on the street to admire.


16 posted on 10/24/2019 6:49:22 AM PDT by WKUHilltopper
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To: olepap

If you want to baffle them (and insult them at the same time) explain to them that you need to share the bad news—they are victims of the Dunning-Kruger effect.

https://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect

There is no known cure—but perhaps with research and compassion we may find one—some day. ;-)


17 posted on 10/24/2019 6:51:29 AM PDT by cgbg (Vote Trump or you will _be_ Trump)
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To: Dilbert San Diego

“...So it’s not price gouging and it’s not a hidden mystery as to why gas prices are higher in California....”
Exactly. It’s the communist ideology over the years that foisted this onto the “unwashed masses”....but hey, they voted for the vile POSs. Introducing communist control and ideology to replace free market & competition and the consequences can be huge...like in gas prices, housing costs, food costs, etc.


18 posted on 10/24/2019 6:53:03 AM PDT by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: Obadiah

Sign the petition to recall Gov Nuisance Both Democrats and Republicans can sign the petition.


19 posted on 10/24/2019 6:53:20 AM PDT by hapnHal
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To: karpov

Who really sets the price of gas?

YOU do.

Every time you don’t shop around and buy gas at an expensive station, you tell the market the average price is too low.

Every time you shop around and buy gas at the cheapest station, you tell the market the price is too high.

Believe it or not the market listens to people who vote with their dollars.

Vote wisely.

According to the Gas Buddy ap, which I recommend, prices in my too close to California area range from 3.35 to 4.49, a $1.14 spread.


20 posted on 10/24/2019 7:09:27 AM PDT by null and void (Convicted spies are shot, traitors are hanged, saboteurs are subject to summary execution...)
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