I have a question for those on this board that are in California...
I just heard on one of our local radio news stations... a legislator from PA is trying to develop a bill where as the state of Pennsylvania will regulate at the state level the price of gas at the pump to avoid price gouging. It is said it will be similar to the milk regulation we have. The Bill is in the infancy stages with input from the PUC and milk marketing boards to draft this bill just getting started.
The report stated California has this same regulation at the state level in place for a number of years.. Makes me wonder... Is this true? If it is, is it positive for the consumer? California has the highest prices in the nation.. and it's regulated at the state level?
Why are California gasoline prices higher and more variable than others?
The State of California operates its own reformulated gasoline program with more stringent requirements than Federally-mandated clean gasolines. In addition to the higher cost of cleaner fuel, there is a combined State and local sales and use tax of 7.25 percent on top of an 18.4 cent-per-gallon Federal excise tax and an 18.0 cent-per-gallon State excise tax. Refinery margins have also been higher due in large part to price volatility in the region.
California prices are more variable than others because there are relatively few supply sources of its unique blend of gasoline outside the State. California refineries need to be running near their fullest capabilities in order to meet the State’s fuel demands. If more than one of its refineries experiences operating difficulties at the same time, California’s gasoline supply may become very tight and the prices soar. Supplies could be obtained from some Gulf Coast and foreign refineries; however, California’s substantial distance from those refineries is such that any unusual increase in demand or reduction in supply results in a large price response in the market before relief supplies can be delivered. The farther away the necessary relief supplies are, the higher and longer the price spike will be.
California was one of the first States to ban the gasoline additive methyl tertiary butyl ether (MTBE) after it was detected in ground water. Ethanol, a non-petroleum product usually made from corn, is being used in place of MTBE. Gasoline without MTBE is more expensive to produce and requires refineries to change the way they produce and distribute gasoline. Some supply dislocations and price surges occurred in the summer of 2003 as the State moved away from MTBE. Similar problems have also occurred in past fuel transitions
Yes, there is price control style law in effect out here. However, the only thing it does is put a cap on the retail price over what the wholesale cost is. It came out of the first oil embargo in the 70's where retailers, not the oil companies, were gouging the hell out of people by jacking the prices up at the pump and pocketing enormous profits.
Regarding California's gasoline blend, the oil companies use it as an excuse to gouge the living crap out of us. Here's why: California is the biggest market, by far, in the western United States. 30+ million people. Very high per capita use of gasoline because you have to drive everywhere to do anything. We should be enjoying economies of scale -- as our blend should be the standard for the entire region -- and sold in other states, such as Washington, Oregon, Nevada and Arizona. After all, why produce different formulas when you can reduce cost by producing one -- which happens to be the cleanest burning? But, no, we're talking about the oil companies here -- which is why instead of the smaller markets paying a nickel a gallon more -- the largest market pays 50 cents a gallon more. It's total BS.
Man o days.... Giving non profit groups and the elderly breaks on many things have become the norm in this country. Giving gas at a few cents a gallon discount can generate fines to service station owners? The state is mandating in this instance, you sell for the max or you'll pay the price. Now you have to charge the max or face fines....a socialistic strong arm maneuver.
I read that article and the first thing I thought was a conspiracy to keep prices high. The state figures it's losing tax revenue by a conscientiousness person giving a discount. The higher the cost of gas the more tax revenue for the state. Further manipulation to keep the price high?
As far as California regulating at the state level....I heard that reported twice on the news.... don't know if it's true. If it is, I am wondering if the people there can see a difference. I don't trust our Governor, Ed Rendell. He disguises his lies. He ought to be wearing camouflage when talking so when he out right lies the lies will blend in with a few truths he tells.
The legislator who is advocating this stated that "if the oil companies see big brother is watching they may be more inclined to watch their price raises with fear of government stepping in." I would assume they'd smack the retailers, not the oil companies.
He stated similar to California's so I would assume the state will target the retailer then. When I heard that on the news I thought, how do you regulate the oil companies when they own the government.
Socialism never works. Ever. And "price caps" is the government dictating to the private sector what they can for their goods.
Socialism.
Yes, fuel prices suck here. I live within a 5-mile radius of two refineries, and I paid $3.72/gal for Premium this morning.
Good thing I made a change and netted over 28 mpg this morning with an average speed of 70 mph over the 110 miles from home to work.
I reacted to the market under my own free will. I do not want the government trying to "fix" anything, especially since they are netting record revenues in fuel tax income and dictated this idiotic fuel blend clusterf#ck in the first place.
Socialism never works. Ever. And "price caps" is the government dictating to the private sector what they can for their goods.
Socialism.
Yes, fuel prices suck here. I live within a 5-mile radius of two refineries, and I paid $3.72/gal for Premium this morning.
Good thing I made a change and netted over 28 mpg this morning with an average speed of 70 mph over the 110 miles from home to work.
I reacted to the market under my own free will. I do not want the government trying to "fix" anything, especially since they are netting record revenues in fuel tax income and dictated this idiotic fuel blend clusterf#ck in the first place.
Exactly right. Government screws up everything they touch.
I'm in the process of getting rid of the Dakota. The Vette gets better mileage and I know tons of people with trucks for the 5 times a year I need one. Buy a guy a tank of gas and his truck is yours.
I'm riding my bike 2 days a week to work and getting healthier and saving money. I've also changed some of my driving habits, like combining trips. Right now my gas bill with the highest gas prices ever is down by $13 a month from last November when gas was at a low.
I am sure if our glorious Governor gets involved in this, things will only get worse. He's fouled everything up he's touched. If his nose would grow every time he's lied or told us a distorted truth he'd fall front every time he'd stand up.
Since he took office.....Our roads have turned into one of the top 5 worse highways in the country, we have 2 cities that rank in the top tier with poor air quality, he advocates highway safety then eliminated motor cycle helmets while advocating seat belt click it or ticket programs Makes a whole hell of a lot of sense.
During a major snow fall last winter, a portion of one of the most heavily traveled highways in the state came to a stand still for 48 hours stranding hundreds of motorists for 2 days in a snow storm. The cause was 2 jack knifed tractor trailers.. and no one could get to them and if they could we were told they couldn't budge the trucks... dayum.... An army reserve was not too far away.,... you'd think the National Guard with tanks could pull them out then plow the roads ahead of the blockade and get things rolling.... NOPE. He apologized and blamed himself.. geesh that did a lot of good to the infants that had to have fuel and blankets sent to them to keep from freezing to death....
Lets see what else.... Oh yea.... Homicides in PA are escalating...He is blaming it on the easy availability of guns... I know none of my guns will go off until I pull the trigger...I always thought automatic weapons only went off if you kept the trigger pressed down, I didn't think automatic meant they went off all by themselves. He wants to limit hand gun purchases to one per month... Brilliant. Even the dumbest of the dumbest knows not to go buy a hand gun then go kill someone then leave it at the scene. Come book me Dano.
Gaming in PA will reduce Property taxes.... This is the biggest scam he's tried to sell us... Funny, only 1 school district in the state voted for his bill, and he blamed the rest for not understanding the full concept of the bill. What happened was School's raised their School taxes at least 3x in one year for fear of this bill passing because if it did, residents could actually help deny the school districts by voting from raising taxes too high cause they'd have a ceiling on it. We are left now with at least 3 years worth of raised taxes in one year. My school tax went up do high Jack's beanstalk can't match it.
PA's Mass transit is on the verge of bankruptcy... And the roads are so bad an earthquake can only help them... IDEA... Lets sell the turnpike to an outside outfit...so we can use that money to fix our roads and bale out Mass Transit... Brilliant. Blame the high rise in turnpike fees on the foreign group that will own it PA didn't have these problems before he took office..And now
I can only imagine what will happen if he gets his lunch hooks in to the Gas problems. Not that it matters,, he's a democrat. Not that there is anything wrong with that. LOL.
Now you stop bad mouthin Gov Rendell. He's a politician! Only an idiot would expect leadership or vision from one of those. I got caught up in the Penndot mismanagement of that snowstorm this winter that you mentioned. I was driving from Stamford ,CT to State College, PA. They actually had several major highways closed down. For 10 inches of snow!!! Luckily I was in an SUV with Blizzaks and a Nav system. I traveled secondary roads for 120 miles across Pennsyltucky. Penndot is truly incompetent.
I've also dealt with members of Rendell's cabinet (Kathleen McGinty - DEP Secretary) while trying to build a $250MM manufacturing business in Pennsyltucky. When I wasn't watching the DEP nodding their heads in incompetence, I was fighting with PennDOT, the PUC, and yes even the PHMC. That's the Pennsyltucky Historical & Museum commission. Watching these three agencies fighting with each other was an education in State Government. We were also trying to build a natural gas pipeline to bring energy into the aforementioned manufacturing site. In the end, the state squabbling caused a 100% overrun (about $5MM). I have seen your state in action. They suck! I'm sure most States have equally adept career bureaucrats. And we let these people legislate and enforce our laws
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He wants to limit hand gun purchases to one per month... Brilliant. Even the dumbest of the dumbest knows not to go buy a hand gun then go kill someone then leave it at the scene. Come book me Dano. 
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