3 ms·
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 truck
by 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 agoCalifornia 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.