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Gas price spikes disguise real problems with California market

Los Angeles Times -- Too few companies own too many refineries and the obstacles to bringing in out-of-state supplies in an emergency are too great.

Gasoline price spikes, such as the event that drove the average gallon in California to a stratospheric $4.67 in October, create two types of frustration.

There's the immediate frustration of seeing the price at the pump soar almost overnight to a figure that could buy you 10 Hostess Twinkies (in a non-panicking market, that is). Then there's the longer-term frustration that arises from the recognition that very little can be done to protect the California consumer from future spikes, and that very little has been done to address the bigger issues with the state's gasoline market. Those issues are that too few companies own too many refineries and the obstac

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Submitted Nov 28, 2012 By: aservant

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jrs4125 Champion Author Indiana Posts:2,773 Points:594,670 Joined:Sep 2011	Message Posted: Nov 29, 2012 4:45:23 AM Ignore jrs4125 Report Abuse Can you say enron?
gs7101 Champion Author San Antonio Posts:5,538 Points:389,345 Joined:Jun 2009	Message Posted: Nov 29, 2012 4:32:48 AM Ignore gs7101 Report Abuse Californians cannot catch a break at the gas pumps!
ExplorerWA Champion Author Washington Posts:4,093 Points:800,075 Joined:Feb 2011	Message Posted: Nov 28, 2012 9:04:34 PM Ignore ExplorerWA Report Abuse Alaydown, your statement is the truth. I sure agree with it.
spiderjay Champion Author Little Rock Posts:4,773 Points:1,282,235 Joined:Oct 2005	Message Posted: Nov 28, 2012 4:34:38 PM Ignore spiderjay Report Abuse money hungry BEEPs
Alaydown Champion Author Los Angeles Posts:5,131 Points:825,570 Joined:May 2007	Message Posted: Nov 28, 2012 2:07:33 PM Ignore Alaydown Report Abuse The primary reason for higher prices in California is because of the rules, regulations and laws set by the DemocRAT majority legislature. They scream market manipulation and/or collusion, but they never ever find anything wrong in their investigations because there was no manipulation or collusion. Higher prices are caused by the laws they pass. For example: They restrict importing gasoline from other states when other states provide similar blends of gasoline. That means less supply and less competition. There are too many expensive complicated blends of gasoline which make the cost of gasoline much more expensive. They require these because their regulations are stricter than the EPA's. Additionally, their cap-and-trade law AB32 has increased the price higher and caused some refinery operations to shutdown. And of course the gasoline tax is too high. The taxes on gasoline here are currently 50.6 cents per gallon from the state. That combined with the fed's 18.4 cents means we pay 69 cents per gallon. So for every 15-gallon fill-up, that means more than $10 are going to taxes. For diesel fuel, total fed and state taxes are at 79.5 cents per gallon, with CA taking 55.1 cents of that. Gasoline prices are high in every state because of the obstruction of domestic oil production by Obama along with his monetary, economic, energy and environmental policies, but they are higher in California because of the rules, regulations and laws imposed by the majority party (DemocRATs).
voyagerkim All-Star Author Los Angeles Posts:620 Points:173,110 Joined:Oct 2011	Message Posted: Nov 28, 2012 2:07:13 PM Ignore voyagerkim Report Abuse What disguise? It's greed, no matter how you color it. . .
us412 Champion Author Arkansas Posts:22,840 Points:2,420,050 Joined:Apr 2006	Message Posted: Nov 28, 2012 9:39:16 AM Ignore us412 Report Abuse raise prices, that's the ticket.
rcornel All-Star Author San Diego Posts:734 Points:230,020 Joined:Jun 2012	Message Posted: Nov 28, 2012 9:17:57 AM Ignore rcornel Report Abuse OK
DesertRat2011 Champion Author Riverside Posts:3,628 Points:487,755 Joined:Jun 2011	Message Posted: Nov 28, 2012 9:09:31 AM Ignore DesertRat2011 Report Abuse Too few refineries and special blend gas are the major problem for us out here in California
geezrtek Champion Author Michigan Posts:1,922 Points:432,410 Joined:Apr 2011	Message Posted: Nov 28, 2012 8:27:24 AM Ignore geezrtek Report Abuse Of course California could drop their bizarre set of gasoline regulations that helped create the situation. California having a fit of sanity, not likely.
cssco Champion Author Virginia Posts:7,341 Points:1,754,435 Joined:Feb 2006	Message Posted: Nov 28, 2012 8:05:37 AM Ignore cssco Report Abuse I guess!
investmentdr Champion Author Cleveland Posts:4,039 Points:1,457,750 Joined:Sep 2008	Message Posted: Nov 28, 2012 8:05:22 AM Ignore investmentdr Report Abuse -1.5% today
Double_Golden Champion Author San Francisco Posts:2,575 Points:608,310 Joined:Aug 2011	Message Posted: Nov 28, 2012 7:58:49 AM Ignore Double_Golden Report Abuse b/c CA have high standard for fuel to emitted less carbon...
CityCouponer All-Star Author New Orleans Posts:948 Points:204,180 Joined:Aug 2012	Message Posted: Nov 28, 2012 7:56:28 AM Ignore CityCouponer Report Abuse Hmmm
autohio Champion Author Ohio Posts:3,790 Points:822,400 Joined:Jan 2011	Message Posted: Nov 28, 2012 7:52:08 AM Ignore autohio Report Abuse Okay
Chinto12 Champion Author Illinois Posts:1,036 Points:412,335 Joined:Jan 2012	Message Posted: Nov 28, 2012 7:51:56 AM Ignore Chinto12 Report Abuse California has done this to themselves with crazy mandates.
tomok Champion Author Portland Posts:33,088 Points:2,348,435 Joined:Aug 2006	Message Posted: Nov 28, 2012 7:48:20 AM Ignore tomok Report Abuse Gas price spikes disguise real problems with California market? The price you pay when living in dense population centers, enviromental regulations gone wild And at the mercy of Big Oil and their antics. More refineries is Not the answer, keep the exported fuel and natural gas here. How clean is the air in high population centers? What to do, What to do? Whatever the size or shape of the vehicle, vehicle manufactures Produce and the population ‘Drives’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. The price of fuel at the pump is too high! XII/XXII/MMXII!
slgas Champion Author Houston Posts:6,045 Points:1,565,465 Joined:Oct 2008	Message Posted: Nov 28, 2012 7:45:07 AM Ignore slgas Report Abuse What starts in California often escapes to other states.
BudsterMO Champion Author Kansas City Posts:3,724 Points:706,835 Joined:Aug 2009	Message Posted: Nov 28, 2012 7:44:31 AM Ignore BudsterMO Report Abuse The California market is a monopoly. When too few Corporations own the market the customer pays outrageously high prices. Laws are supposed to work for the people not just a rich few.
us30ride Champion Author Fort Wayne Posts:3,345 Points:715,560 Joined:Apr 2011	Message Posted: Nov 28, 2012 7:40:31 AM Ignore us30ride Report Abuse Should have built more refineries 20 years ago.
BearGolfn Champion Author Twin Cities Posts:2,229 Points:552,570 Joined:May 2011	Message Posted: Nov 28, 2012 7:40:10 AM Ignore BearGolfn Report Abuse they will screw it up somehow
SnickersDog Champion Author Denver Posts:3,298 Points:683,910 Joined:Feb 2011	Message Posted: Nov 28, 2012 7:39:05 AM Ignore SnickersDog Report Abuse Keep it out there.
niceguytx Champion Author Houston Posts:13,711 Points:2,716,435 Joined:Sep 2005	Message Posted: Nov 28, 2012 7:38:46 AM Ignore niceguytx Report Abuse California like to try new things.
ifallsguy Champion Author Minnesota Posts:5,180 Points:1,553,670 Joined:Apr 2007	Message Posted: Nov 28, 2012 7:38:03 AM Ignore ifallsguy Report Abuse free enterprise is dead and buried in California
Ticobird Champion Author Huntsville Posts:3,246 Points:1,118,940 Joined:Oct 2009	Message Posted: Nov 28, 2012 7:37:52 AM Ignore Ticobird Report Abuse I hope a few California GasBuddys start commenting but it's probably just a little too early. Anyway, it will be interesting to read what they think about this subject.
icebiker Rookie Author Calgary Posts:47 Points:112,815 Joined:May 2011	Message Posted: Nov 28, 2012 7:37:14 AM Ignore icebiker Report Abuse @duffee01, when the government spends money, it's spread evenly, but is more wasteful. Let the market sort it out.
Maintroll Champion Author Lexington Posts:8,649 Points:1,706,060 Joined:Aug 2008	Message Posted: Nov 28, 2012 7:36:13 AM Ignore Maintroll Report Abuse I don't know which would be worse right now, California or New York City to live in. Fortunately I don't in either.
munkeyciao Veteran Author Quad Cities Posts:266 Points:160,825 Joined:Aug 2012	Message Posted: Nov 28, 2012 7:35:40 AM Ignore munkeyciao Report Abuse Ouch.
tribill Champion Author Twin Cities Posts:3,342 Points:2,341,960 Joined:Feb 2006	Message Posted: Nov 28, 2012 7:35:37 AM Ignore tribill Report Abuse Whatever........
techque Champion Author St. Louis Posts:8,670 Points:2,422,555 Joined:Apr 2005	Message Posted: Nov 28, 2012 7:35:34 AM Ignore techque Report Abuse Teddy Roosevelt broke up J.D.Rockefeller's refining monopoly a century ago. Is it time to do it again ?
gilfarm Champion Author Alabama Posts:6,811 Points:1,951,765 Joined:Sep 2005	Message Posted: Nov 28, 2012 7:35:28 AM Ignore gilfarm Report Abuse Rich get richer!
n0vyy Veteran Author Twin Cities Posts:493 Points:1,385,640 Joined:Oct 2003	Message Posted: Nov 28, 2012 7:34:48 AM Ignore n0vyy Report Abuse First sentence should be: Too few companies own too FEW refineries......
Sam195 Champion Author San Bernardino Posts:8,105 Points:1,578,000 Joined:Oct 2008	Message Posted: Nov 28, 2012 7:33:38 AM Ignore Sam195 Report Abuse This is what you get with over-regulation.
TXGasPriceSpy Champion Author Fort Worth Posts:7,825 Points:1,475,200 Joined:Sep 2008	Message Posted: Nov 28, 2012 7:33:34 AM Ignore TXGasPriceSpy Report Abuse No CA for me.
Soglaos Champion Author Virginia Beach Posts:2,771 Points:742,655 Joined:Feb 2011	Message Posted: Nov 28, 2012 7:32:20 AM Ignore Soglaos Report Abuse It is greed that drives the market place pure and simple greed
eights Champion Author Ohio Posts:2,284 Points:641,995 Joined:Aug 2006	Message Posted: Nov 28, 2012 7:31:50 AM Ignore eights Report Abuse its here in ohio
Holly123 Champion Author Charlotte Posts:3,217 Points:793,135 Joined:Dec 2010	Message Posted: Nov 28, 2012 7:31:47 AM Ignore Holly123 Report Abuse I couldn't afford to be a homeless person in CA.
CrackedLCD Champion Author Alabama Posts:9,046 Points:1,757,750 Joined:May 2008	Message Posted: Nov 28, 2012 7:31:42 AM Ignore CrackedLCD Report Abuse They made their bed in CA, now they can sleep in it.
thirty8paces Champion Author Baltimore Posts:4,536 Points:1,110,030 Joined:Sep 2008	Message Posted: Nov 28, 2012 7:31:25 AM Ignore thirty8paces Report Abuse Glad that's not happening here. Though Comrade O'Malley would love to hike the taxes that high.
duffee01 All-Star Author Mississippi Posts:781 Points:430,590 Joined:Sep 2011	Message Posted: Nov 28, 2012 7:30:59 AM Ignore duffee01 Report Abuse In some instances the Federal Government could step in and help out the consumer. The consumer is bearing the brunt of everything!
LQQKGAS Champion Author Phoenix Posts:2,678 Points:1,198,820 Joined:Oct 2009	Message Posted: Nov 28, 2012 7:30:51 AM Ignore LQQKGAS Report Abuse Just think, What if your power or water company could get away with this!
mrservonics Champion Author Boston Posts:2,744 Points:1,356,330 Joined:May 2005	Message Posted: Nov 28, 2012 7:30:15 AM Ignore mrservonics Report Abuse MORE renewables!!
bobcatfan Champion Author Kentucky Posts:1,613 Points:620,495 Joined:Apr 2011	Message Posted: Nov 28, 2012 7:30:05 AM Ignore bobcatfan Report Abuse According to laws passed in CA twenty years ago, they shouldn't be using any gasoline at all. Everything was supposed to be zero emissions by 2010.
msgt_usa Champion Author Virginia Posts:3,478 Points:935,555 Joined:Sep 2008	Message Posted: Nov 28, 2012 7:30:03 AM Ignore msgt_usa Report Abuse People in California want a lavish lifestyle, well it does come at some costs. Suck it up.
Goatroper Champion Author Dallas Posts:6,609 Points:1,296,410 Joined:Apr 2004	Message Posted: Nov 28, 2012 7:29:57 AM Ignore Goatroper Report Abuse The state has created a hostile environment to the oil refiners. So many hoops to jump through with minimal profits.
Spirits All-Star Author Florida Posts:911 Points:372,800 Joined:May 2008	Message Posted: Nov 28, 2012 7:29:50 AM Ignore Spirits Report Abuse Everything costs more in Cal. so get used to it or move.
TheSicilian Champion Author Jacksonville Posts:5,394 Points:1,472,675 Joined:Feb 2009	Message Posted: Nov 28, 2012 7:29:12 AM Ignore TheSicilian Report Abuse its everywhere
LarksNY Champion Author Albany Posts:1,409 Points:637,865 Joined:Jun 2006	Message Posted: Nov 28, 2012 7:28:35 AM Ignore LarksNY Report Abuse A bit of a monopolistic approach that will continue to be supported by our politicians as long as their coffers are filled with campaign $$$.
ejl2000 Champion Author New Jersey Posts:1,272 Points:586,335 Joined:Aug 2005	Message Posted: Nov 28, 2012 7:28:09 AM Ignore ejl2000 Report Abuse CA.... The land of fruits and nuts! Deal with it yourselves!
roger1315 All-Star Author North Carolina Posts:763 Points:496,420 Joined:Feb 2011	Message Posted: Nov 28, 2012 7:27:47 AM Ignore roger1315 Report Abuse Can't see why that much spike in fuel so quick