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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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Author Topic: Gas price spikes disguise real problems with California market Back to Topics
REPLIES (newest first) Post a Reply
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jrs4125
Champion Author Indiana

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Message Posted: Nov 29, 2012 4:45:23 AM

Can you say enron?
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gs7101
Champion Author San Antonio

Posts:7,715
Points:528,770
Joined:Jun 2009
Message Posted: Nov 29, 2012 4:32:48 AM

Californians cannot catch a break at the gas pumps!
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ExplorerWA
Champion Author Washington

Posts:5,965
Points:1,213,840
Joined:Feb 2011
Message Posted: Nov 28, 2012 9:04:34 PM

Alaydown, your statement is the truth. I sure agree with it.
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spiderjay
Champion Author Little Rock

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Message Posted: Nov 28, 2012 4:34:38 PM

money hungry BEEPs
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 28, 2012 2:07:33 PM

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).
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voyagerkim
All-Star Author Los Angeles

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Message Posted: Nov 28, 2012 2:07:13 PM

What disguise? It's greed, no matter how you color it. . .
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us412
Champion Author Arkansas

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Message Posted: Nov 28, 2012 9:39:16 AM

raise prices, that's the ticket.
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rcornel
Champion Author San Diego

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Message Posted: Nov 28, 2012 9:17:57 AM

OK
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DesertRat2011
Champion Author Riverside

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Message Posted: Nov 28, 2012 9:09:31 AM

Too few refineries and special blend gas are the major problem for us out here in California
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geezrtek
Champion Author Michigan

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Message Posted: Nov 28, 2012 8:27:24 AM

Of course California could drop their bizarre set of gasoline regulations that helped create the situation. California having a fit of sanity, not likely.
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cssco
Champion Author Virginia

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Message Posted: Nov 28, 2012 8:05:37 AM

I guess!
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investmentdr
Champion Author Cleveland

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Message Posted: Nov 28, 2012 8:05:22 AM

-1.5% today
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Double_Golden
Champion Author San Francisco

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Message Posted: Nov 28, 2012 7:58:49 AM

b/c CA have high standard for fuel to emitted less carbon...
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CityCouponer
Champion Author New Orleans

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Message Posted: Nov 28, 2012 7:56:28 AM

Hmmm
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autohio
Champion Author Ohio

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Message Posted: Nov 28, 2012 7:52:08 AM

Okay
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Chinto12
Champion Author Illinois

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Message Posted: Nov 28, 2012 7:51:56 AM

California has done this to themselves with crazy mandates.
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tomok
Champion Author Portland

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Message Posted: Nov 28, 2012 7:48:20 AM

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!
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slgas
Champion Author Houston

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Message Posted: Nov 28, 2012 7:45:07 AM

What starts in California often escapes to other states.
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BudsterMO
Champion Author Kansas City

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Message Posted: Nov 28, 2012 7:44:31 AM

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.
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us30ride
Champion Author Fort Wayne

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Message Posted: Nov 28, 2012 7:40:31 AM

Should have built more refineries 20 years ago.
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BearGolfn
Champion Author Twin Cities

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Message Posted: Nov 28, 2012 7:40:10 AM

they will screw it up somehow
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SnickersDog
Champion Author Denver

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Message Posted: Nov 28, 2012 7:39:05 AM

Keep it out there.
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niceguytx
Champion Author Houston

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Message Posted: Nov 28, 2012 7:38:46 AM

California like to try new things.
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ifallsguy
Champion Author Arizona

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Message Posted: Nov 28, 2012 7:38:03 AM

free enterprise is dead and buried in California
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Ticobird
Champion Author Huntsville

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Message Posted: Nov 28, 2012 7:37:52 AM

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.
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icebiker
Sophomore Author Calgary

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Message Posted: Nov 28, 2012 7:37:14 AM

@duffee01, when the government spends money, it's spread evenly, but is more wasteful. Let the market sort it out.
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Maintroll
Champion Author Lexington

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Message Posted: Nov 28, 2012 7:36:13 AM

I don't know which would be worse right now, California or New York City to
live in. Fortunately I don't in either.
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munkeyciao
Veteran Author Quad Cities

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Message Posted: Nov 28, 2012 7:35:40 AM

Ouch.
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tribill
Champion Author Twin Cities

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Message Posted: Nov 28, 2012 7:35:37 AM

Whatever........
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techque
Champion Author St. Louis

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Message Posted: Nov 28, 2012 7:35:34 AM

Teddy Roosevelt broke up J.D.Rockefeller's refining monopoly a century ago.
Is it time to do it again ?
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gilfarm
Champion Author Alabama

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Message Posted: Nov 28, 2012 7:35:28 AM

Rich get richer!
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n0vyy
All-Star Author Twin Cities

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Message Posted: Nov 28, 2012 7:34:48 AM

First sentence should be: Too few companies own too FEW refineries......
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Sam195
Champion Author San Bernardino

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Message Posted: Nov 28, 2012 7:33:38 AM

This is what you get with over-regulation.
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TXGasPriceSpy
Champion Author Fort Worth

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Message Posted: Nov 28, 2012 7:33:34 AM

No CA for me.
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Soglaos
Champion Author Virginia Beach

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Message Posted: Nov 28, 2012 7:32:20 AM

It is greed that drives the market place pure and simple greed
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eights
Champion Author Ohio

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Message Posted: Nov 28, 2012 7:31:50 AM

its here in ohio
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Holly123
Champion Author Charlotte

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Message Posted: Nov 28, 2012 7:31:47 AM

I couldn't afford to be a homeless person in CA.
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CrackedLCD
Champion Author Alabama

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Message Posted: Nov 28, 2012 7:31:42 AM

They made their bed in CA, now they can sleep in it.
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thirty8paces
Champion Author Baltimore

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Message Posted: Nov 28, 2012 7:31:25 AM

Glad that's not happening here. Though Comrade O'Malley would love to hike the taxes that high.
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duffee01
Champion Author Mississippi

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Message Posted: Nov 28, 2012 7:30:59 AM

In some instances the Federal Government could step in and help out the consumer. The consumer is bearing the brunt of everything!
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LQQKGAS
Champion Author Phoenix

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Message Posted: Nov 28, 2012 7:30:51 AM


Just think, What if your power or water company could get away with this!
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mrservonics
Champion Author Boston

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Message Posted: Nov 28, 2012 7:30:15 AM

MORE renewables!!
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bobcatfan
Champion Author Kentucky

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Message Posted: Nov 28, 2012 7:30:05 AM

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.
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msgt_usa
Champion Author Virginia

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Message Posted: Nov 28, 2012 7:30:03 AM

People in California want a lavish lifestyle, well it does come at some costs. Suck it up.
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Goatroper
Champion Author Dallas

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Message Posted: Nov 28, 2012 7:29:57 AM

The state has created a hostile environment to the oil refiners. So many hoops to jump through with minimal profits.
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Spirits
All-Star Author Florida

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Message Posted: Nov 28, 2012 7:29:50 AM

Everything costs more in Cal. so get used to it or move.
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TheSicilian
Champion Author Jacksonville

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Message Posted: Nov 28, 2012 7:29:12 AM

its everywhere
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LarksNY
Champion Author Albany

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Message Posted: Nov 28, 2012 7:28:35 AM

A bit of a monopolistic approach that will continue to be supported by our politicians as long as their coffers are filled with campaign $$$.
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ejl2000
Champion Author New Jersey

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Message Posted: Nov 28, 2012 7:28:09 AM

CA.... The land of fruits and nuts! Deal with it yourselves!
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roger1315
Champion Author North Carolina

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Message Posted: Nov 28, 2012 7:27:47 AM

Can't see why that much spike in fuel so quick
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