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This is California gas price break down for August 2019 [1]: ======================== Aug 26 Branded Unbranded Distribution Costs, Marketing Costs and Prof

This is California gas price break down for August 2019 [1]: ======================== Aug 26 Branded Unbranded Distribution Costs, Marketing Costs and Profits $0.410 $0.650 Crude Oil Costs $1.430 $1.430 Refinery Cost and Profit $0.850 $0.610 State Underground Storage Tank Fee $0.020 $0.020 State and Local Tax $0.076 $0.076 State Excise Tax $0.473 $0.473 Federal Excise Tax $0.184 $0.184 Retail Prices $3.440 $3.440 ======================== Total State tax: 0.02 + 0.076 + 0.473 = 0.569 California high gas price might have more things to do with location, affordability, and demand than what people are willing to attribute to it. The breakdown shows that California does have high gas tax, but it's not $2 high. Even within the Bay Area, I can see $1 price swing between the rich neighborhoods and other neighborhoods. Driving from SF to LA, and you can also see the price swing through different town. Some parts in LA county often have higher than $5/gallon. I'm guilty on multiple occasions when I just pull up to the closest gas stations and fill up without checking if I can save a bit more somewhere else. When half of your town earns at least $250K a year, the gas stations can jack up the price without being afraid of losing customers. [1] https://ww2.energy.ca.gov/almanac/transportation_data/gasoline/margins/index_cms.php https://ww2.energy.ca.gov/almanac/transportation_data/gasoli...

dmix 7y ago
Rent and real estate prices influencing gas prices are also a large part due to the CA/SF gov... Texas builds way more buildings and makes much better use of space. Not to mention the additional costs of running the business and employing people, which are also added to all of their supply chains. It adds up. I remember moving to SF and being shocked I was getting taxed the same rate as living in Toronto, but that doesnt include health care or nearly as much benefits as Canada. Canada gets a lot of heat from Americans for being 'socialist' but there's plenty of counter examples, Toronto builds 100x more buildings than SF, our corporate tax is way lower than US, our ratio of economic immigrants:family migration is significantly higher, our banks/governments have been more fiscally conservative, etc. Plus Canada ranks higher on economic freedom index than America (8th vs 17th): https://en.wikipedia.org/wiki/Index_of_Economic_Freedom https://en.wikipedia.org/wiki/Index_of_Economic_Freedom I hope this perception that the US is a market economy starts to change. A state-by-state distinction is much better. California is always the leading example of this change and the best signal of where the US is heading, as other US states seem to copy California for some reason.
- lotsofpulp 7y ago
  > Texas builds way more buildings and makes much better use of space. Only if you think being able to walk/bicycle places is undesirable. Just thinking about all those gated suburbs separated from each other by 6 lane roads and medians makes me shudder.
cnst 7y ago
> California high gas price might have more things to do with location, affordability, and demand than what people are willing to attribute to it. Not buying this. It'd been widely reported that California has different requirements for fuel than most of the rest of the states, so, there's probably a bit extra that goes into refinery costs in addition to your calculation.
- jjeaff 7y ago
  There is quite a bit more refinery costs. But it's not just the cost to produce it, it's the fact that producing California has requires special plant configurations. So even a surplus of gas in Texas may not affect CA supply. There are sometimes shortages of the CA approved gas, thus causing price spikes.
burfog 7y ago
I wasn't claiming the $2 was gas tax. Policy is more than just the gas tax. Policy drives up "Distribution Costs". If it is hard to operate a fuel tanker trucking company in California, the cost of distribution will be higher. Truckers are regulated, trucks are regulated, tankers are specifically regulated, flammable liquid is even more regulated, there are normal business taxes to be paid, there are random fees to operate, and so much more. Policy makes the cost go up. It is similar with "Marketing Costs". Simply operating a business in a highly regulated state is difficult. The ad agency will cost more, the places to advertise will charge more, and so on. Refinery costs are much higher. California demands a special unique California formulation of gasoline. Even with California being a large state, this is a low-volume product. It's also a premium product. Actually running any sort of refinery under California law looks like a nightmare, and I'm sort of surprised that it is still a viable business in the state. In the rich neighborhoods, the cost of land and property tax for a gas station is high. That ends up in the price.
- masonic 7y ago
  California demands a special unique California formulation of gasoline Two special CA-specific formulations: winter and summer. Winter gas adds oxygenates, supposedly reducing certain emissions by 10%. However, it has 10% less energy per unit volume, so you burn 10% more of it. Net effect: more expensive with no real world benefit. Best of all, they blame additional local price rises twice a year on the changeover. It's quite a racket.

dmix 7y ago

Rent and real estate prices influencing gas prices are also a large part due to the CA/SF gov... Texas builds way more buildings and makes much better use of space. Not to mention the additional costs of running the business and employing people, which are also added to all of their supply chains. It adds up. I remember moving to SF and being shocked I was getting taxed the same rate as living in Toronto, but that doesnt include health care or nearly as much benefits as Canada. Canada gets a lot of heat from Americans for being 'socialist' but there's plenty of counter examples, Toronto builds 100x more buildings than SF, our corporate tax is way lower than US, our ratio of economic immigrants:family migration is significantly higher, our banks/governments have been more fiscally conservative, etc. Plus Canada ranks higher on economic freedom index than America (8th vs 17th): https://en.wikipedia.org/wiki/Index_of_Economic_Freedom https://en.wikipedia.org/wiki/Index_of_Economic_Freedom I hope this perception that the US is a market economy starts to change. A state-by-state distinction is much better. California is always the leading example of this change and the best signal of where the US is heading, as other US states seem to copy California for some reason.

lotsofpulp 7y ago
> Texas builds way more buildings and makes much better use of space. Only if you think being able to walk/bicycle places is undesirable. Just thinking about all those gated suburbs separated from each other by 6 lane roads and medians makes me shudder.

cnst 7y ago

> California high gas price might have more things to do with location, affordability, and demand than what people are willing to attribute to it. Not buying this. It'd been widely reported that California has different requirements for fuel than most of the rest of the states, so, there's probably a bit extra that goes into refinery costs in addition to your calculation.

jjeaff 7y ago
There is quite a bit more refinery costs. But it's not just the cost to produce it, it's the fact that producing California has requires special plant configurations. So even a surplus of gas in Texas may not affect CA supply. There are sometimes shortages of the CA approved gas, thus causing price spikes.

burfog 7y ago

I wasn't claiming the $2 was gas tax. Policy is more than just the gas tax. Policy drives up "Distribution Costs". If it is hard to operate a fuel tanker trucking company in California, the cost of distribution will be higher. Truckers are regulated, trucks are regulated, tankers are specifically regulated, flammable liquid is even more regulated, there are normal business taxes to be paid, there are random fees to operate, and so much more. Policy makes the cost go up. It is similar with "Marketing Costs". Simply operating a business in a highly regulated state is difficult. The ad agency will cost more, the places to advertise will charge more, and so on. Refinery costs are much higher. California demands a special unique California formulation of gasoline. Even with California being a large state, this is a low-volume product. It's also a premium product. Actually running any sort of refinery under California law looks like a nightmare, and I'm sort of surprised that it is still a viable business in the state. In the rich neighborhoods, the cost of land and property tax for a gas station is high. That ends up in the price.

masonic 7y ago
California demands a special unique California formulation of gasoline Two special CA-specific formulations: winter and summer. Winter gas adds oxygenates, supposedly reducing certain emissions by 10%. However, it has 10% less energy per unit volume, so you burn 10% more of it. Net effect: more expensive with no real world benefit. Best of all, they blame additional local price rises twice a year on the changeover. It's quite a racket.