Originally Posted By: BMWTurboDzl
Originally Posted By: HTSS_TR
Originally Posted By: Quattro Pete
Originally Posted By: qdeezie
I wonder would top tier fuels suffice their requirement?
No. The ultra low sulfur gasoline that Cali has is above and beyond TopTier. Other states are playing catch-up.
I think part of the higher gasoline price in CA is it costs more to produce special blend, the estimate was about 15-25 cents more than the rest of the country. The other is higher state excise tax and add sale tax on top of whole sale price.
. It's only expensive because California refuses to build more refineries.
Supply and demand are pretty well aligned, so building more refineries isn't really going to do much. However, we do have issues because fuel can't typically be shipped in from other states. Right now we're dealing with massive price spikes after one refinery had an explosion and another one shut down in a strike. However, that probably has more to do with being a closed market, where one or two players with issues gives an excuse for everyone else to raise prices. That would happen even with more capacity. And we do get more capacity when existing refineries get permits to expand.
