Californians Pay $10 Million a Day More Than They Should for Gas
gvw_gv_wire
By gvwire
Published 7 years ago on
April 10, 2018

Share

Everyone knows that gas is expensive in California.

The reasons, we are told, include high state taxes, costly special blends and fees aimed at helping the environment.

But San Diego Union-Tribune reporter Rob Nikolewski writes that Californians also pay far more than they should for reasons that no one has publicly identified.

Writes Nikolewski: “UC Berkeley professor Severin Borenstein calls the price differential ‘California’s mystery gasoline surcharge’ that roughly translates into a premium of 20 to 30 cents on every gallon pumped in the state.”

Mystery Surcharge Totals $3 Billion to $4 Billion Annually

Given that Californians put 40 million gallons into their vehicles daily, that mysterious surcharge quickly becomes a whopping number. Borenstein puts the unaccounted-for-costs at between $3 billion and $4 billion annually. That works out to about $10 million a day.

Somebody ought to fix this, right?

Nikolewski reports that the state’s Petroleum Market Advisory Committee “looked into the price discrepancy and turned in its report to the California Energy Commission last fall.”

Reasons for High Prices Are Elusive

The problem is, the panel of five experts from the public and private sectors couldn’t identify why Californians pay too much for gas.

“Theories range from suspicions about gasoline refiners and marketers to criticisms that the state’s regulatory burdens have made California unfriendly to business but Borenstein says they are just that — theories,” reported Nikolewski.

“Borenstein is calling for the formation of a commission to find the exact reasons for the price differential.”

However, Jamie Court, president of Consumer Watchdog, points the finger at the refiners. It is estimated that Tesoro and Chevron total about half of the state’s refining capacity.

The “inside information” refiners “know about each others’ supplies and prices allow them to rig the market to keep gas supplies low, prices high, and drive out competition,” Court said.

But David Hackett, president of Stillwater Associates, a transportation energy consulting company in Irvine, told Nikolewski that the possible explanations are less sinister.

“I think it is a whole bunch of little things that have restricted competition,” Hackett said. “There’s not much competition at the pump in California these days as there used to be, or as there is in other parts of the country.”

Meanwhile, this is certain: Gas costs Californians a lot more than it should cost. And, at least for now, there’s nothing anyone can do about it.

You can read Nikolewski’s “The missing billions spent on gasoline in California each year” at this link.

 

DON'T MISS

23 for ’23: A Year in Photos

DON'T MISS

See How this Fresno roastery sends aid to Northern Thailand.

DON'T MISS

District Says Fresno Teachers Contract Proposal Would Bankrupt Budget Reserves by Year 3

DON'T MISS

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

DON'T MISS

The Supreme Court Orders Makers of Gun Parts to Comply with Rules on Ghost Guns

DON'T MISS

George W. Bush for Speaker? A Democratic Lawmaker Thinks It’s Possible

DON'T MISS

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

DON'T MISS

Gunman Kills Two Swedes in Brussels, Prompting Terror Alert and Halt of Belgium-Sweden Soccer Match

DON'T MISS

Zakaria: The Best Response to Hamas Would Be to Keep the Saudi Deal Alive

DON'T MISS

Groundbreaking Human Brain Atlas Offers New Hope for Treating Neurological Disorders

UP NEXT

District to Fresno Teachers: Read Our Proposal Before Taking Strike Vote

UP NEXT

George W. Bush for Speaker? A Democratic Lawmaker Thinks It’s Possible

UP NEXT

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

UP NEXT

Newsom Signs Law to Slowly Raise Healthcare Minimum Wage to $25

UP NEXT

Oprah Winfrey Proposed 2020 Presidential Run with Mitt Romney, New Book Reveals

UP NEXT

Republicans Pick Jim Jordan as Nominee for House Speaker, Putting Job Within the Trump Ally’s Reach

UP NEXT

California Considers Stepping in to Manage Groundwater Basin in Farm Country

UP NEXT

Why Do Young Kids Rarely Get Severely Sick from COVID-19? Stanford Medicine Investigates

UP NEXT

Kaiser Permanente Reaches a Tentative Deal With Health Care Worker Unions After a Recent Strike

UP NEXT

GOP’s Scalise Ends His Bid to Become House Speaker After Failing to Secure the Votes to Win Gavel

You May like

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

1 year ago

The Supreme Court Orders Makers of Gun Parts to Comply with Rules on Ghost Guns

1 year ago

George W. Bush for Speaker? A Democratic Lawmaker Thinks It’s Possible

1 year ago

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

1 year ago

Gunman Kills Two Swedes in Brussels, Prompting Terror Alert and Halt of Belgium-Sweden Soccer Match

1 year ago

Zakaria: The Best Response to Hamas Would Be to Keep the Saudi Deal Alive

1 year ago

Groundbreaking Human Brain Atlas Offers New Hope for Treating Neurological Disorders

1 year ago

Newsom Signs Law to Slowly Raise Healthcare Minimum Wage to $25

1 year ago

Former Fresno CC Coach Ed Madec Arrested for Allegedly Threatening to Kill Chancellor

1 year ago

Jim Jordan’s Rapid Rise Cheered by Trump and Far Right. Could It Make Him Speaker?

1 year ago

HOT OFF THE PRESS

23 for ’23: A Year in Photos

1 year ago

1 year ago

Trump Vows to Ban Gaza Refugees, Expand Muslim Travel Ban If He Wins

1 year ago

The Supreme Court Orders Makers of Gun Parts to Comply with Rules on Ghost Guns

Photo of a hacker typing on a laptop

1 year ago

Former Navy IT Manager Gets Five Years for Hacking, ID Theft

1 year ago

Gunman Kills Two Swedes in Brussels, Prompting Terror Alert and Halt of Belgium-Sweden Soccer Match

1 year ago

Zakaria: The Best Response to Hamas Would Be to Keep the Saudi Deal Alive