As Californians wonder why they suffer disproportionately from pumps compared to other states, new research from well-known researchers say that the state’s constant gas prices are “self-invading.”
Michael Mische of USC Marshall School of Business recently published a “Study on Gasoline Prices in California.” You jump into why California is usually the most expensive state in the United States.
Conclusion: High gas prices in California are “the result of a series of directed policies and regulations, taxes, fees and costs,” according to Mishe.
“The data is overwhelmingly persuasive,” he told KTLA on Monday. “There is no evidence of price gouging by gas station owners, state refiners or oil producers. At least it’s spreading.”
California gas prices are suddenly rising again. Here’s why
Michet came to that conclusion after examining gas prices for around 50 years across the state and analysing what led to spikes and lulls.
“California is uniformly recognized as having the strictest regulatory environment for oil and gas companies around the world,” the study reads in part. “Regulators are layered and accumulated throughout the supply chain, regardless of (political) perspective, and ultimately increase the cost burden of compliance for oil and gas industry operators, contributing to rising consumer prices at pumps.”
Mische and other experts have rebutted Gavin Newsom’s claim that oil companies have “guouge” California drivers for years, and that greed has played a greater role than policy and market forces. The governor targeted the industry with research and law aimed at increasing transparency and maintaining price control.
A Newsom spokesman said in a statement to the KTLA that since signing the price-control bill two years ago, he “avoided serious gas-price spikes like the historic 2022 spikes.”
The Phillips 66 refinery was listed in the Wilmington area of Los Angeles on July 16, 2014. (AP Photo/Mark J. Terril, File)
“The law has established the country’s first state-level independent oil watchdog to be held responsible for large oil, and the state is more transparent than ever from the industry,” the statement reads in part.
Patrick Dehaan, head of oil analysis at Gasbuddy, has questioned the approach of Newsom and the California Democrats. If price gouging is really the culprit, he asks, and why is California gas much more expensive than other states?
“These are costs associated only with California,” Dehaan told KTLA on Monday. “California has followed a great job. [refineries] Out of state, I wonder why they don’t have enough gas and why prices aren’t rising soaring. ”
Another reason for the rise in state prices is the decline in state oil production. California is far ahead of the US’s largest economy, but it is the seventh in oil production, Mische notes.
At various points between 1903 and 1930, California was the country’s top producer. Currently, fewer than a few dozen refineries are open by the end of 2025 and are likely to close in the next few years.
The unique blend of gasoline for vehicles, mandated by environmental policy, is not widely manufactured by refineries in places like Texas and Oklahoma, so much of California’s products come from the Middle East.
“California is probably facing a severe supply shortage,” he said. “Supply has dropped faster than demand. Simple economics will tell you… Prices will rise.”
Why are gas prices constantly adding 9/10 additions?
According to the prank, the most obvious hit on consumer wallets in the state is the gas tax. Each year, the price increases on July 1st, with a pump directly increasing the price. As of Monday, it’s 59.7 cents per gallon, making the annual increase easy to inflation.
The state’s gas price turning point came in 2015, Miche said, along with a Cap-and-Trade program facility under the former government. Jerry Brown. According to the California Air Resources Board, the program is a strategy to reduce greenhouse emissions and “creates strong economic incentives for significant investments.”
Miche says it simply passes the cost to the consumer.
“The cap and trade itself is probably the most unstable, and mostly even the most ominous, in my opinion. [reason for high costs]”He said, since 2015, prices have been accelerated, wider and wider as a variance to the national average.”
As of Monday, California’s average gas price was $4.809 per gallon, up nearly $2 from the national average of $3.168, according to the AAA.
So, what’s next? Governor Newsom is committed to a pledge that California will only allow new zero-emission vehicles to be sold from 2035, as repeated by a spokesman in an email to KTLA on Monday.
I’m not that sure about the prank.
“I think that’s a great goal, but I don’t think it’s very realistic. You’ll need to make important infrastructure investments,” Miche said. “It requires intentional adaptation by consumers. It forces consumers to make large changes to their garages and parking lots, so I don’t think it tastes as good as you would think it’s the average citizen, especially low-income Californians and working-class families.”
The electric vehicle charger will be found on August 26, 2022 in the parking lot at South El Monte High School in South El Monte, California.
Mische’s research shows that the looming deadline for 2035 is on your mind, so what are the key points to keep prices low with pumps at these oil refineries and gas stations?
At the present time, [fully electric vehicle]”Pranks aren’t something that would recommend for those who want to dodge high prices. He says consumers should be “mindful” at various prices at local gas stations, and perhaps they should opt for a hybrid when the time comes for a new ride.
“In the end, we have to be a much smarter consumer, as the state’s gas prices will rise.
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