Gas Prices

.

IE Business Daily

By IE Business Daily
Saturday, July 18, 2015

Anyone notice the price of gasoline this week? Of course, if you are like most Californians who have to drive to live (instead of living to drive like the car ads), you have noticed that the price of gas is up 80 cents a gallon in many locations. In some locations, the price is above five dollars a gallon!

There are a number of reasons that have been given for this one week price spike: refinery shutdowns due to scheduled maintenance, shortages of California blend gasoline, and on and on. But none of them really hold water.

But, one thing is certain. This recent explosion of gas prices is entirely manufactured by the policies of the State of California and our elected leaders do not care. While Sacramento politicians are getting ready for a special session to raise gas taxes, the Governor and the legislature are otherwise content to say nothing about the gouging their constituents are receiving.

California already has the highest gas taxes in the country. Along with the highest cumulative sales taxes in the country (depending on your city/county) and the new carbon tax passed onto consumers by the state, Californians pay more in taxes to fill their tanks than even some other socialist countries.

But making prices higher and even more volatile is that California, alone among states, requires its own gasoline blend twice a year rotating from a “winter recipe” to a “summer recipe” and back again every six months or so. We obviously like our blended gasoline just like we like our Starbucks blended coffees, and we pay almost as much for it! And as California had been warned, no other state followed suit so the burden and volatility of these changing blends falls exclusively on our shoulders.

To read expanded column, click here.