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keithhr said:
I have never, in all my life , seen so many lame reasons for the price gouging. If a pipeline broke, temporarily in AZ, why should gas go up in California, I don't get it. I stand corrected, I do get it, more price fixing. When a group of business owners collectively raise all of their prices, it's called price fixing. Once upon a time, I remember competition and events called GAS WARS!
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I live an East Bay suburb of SF--lowest here is about $2.09 /gallon.
The reason for the rise is really not that hard to fathom (and I DON'T own any oil stocks). In its infinite wisdom, California has chosen to make itself an "island" as far as gas goes. All the gas sold in California is, and must be, made in California. We have a "special formula" that no one else wants or makes. No new refineries have or are being built here--and many people would vote to to have the ones that are here go away, if they could. Gas consumption continues to increase due to population growth and the popularity of less fuel effecient cars. There has been some gas supply increase due to efficiency gains at the current refineries, but this has barely been enough to keep up with demand.
So, here we are at the peak demand time (summer) and there is a hiccup in Arizona. There is a pipeline between Southern California and Arizona and the owners of the gas decide that the price is now better in Arizonia (which it is, prices there are higher than SF). Free Country, they ship their gas to Arizonia, which is happy to have it. In California the supply goes down (just a little, actually) while demand remains constant. Guess what happens? Price goes up, up, up until demand goes down. I would wager that less gas is being sold in state today than 30 days ago, although the dollar volume is probably up nicely.
So, who would like to have a refinery or two in their backyards (has to be near the coast to get that imported oil, too) to help us solve this problem?? Anyway, isn't it in the Constitution somewhere that we have a god-given right to cheap gas?