Monday, April 29, 2019

the Governor and Attorney General of California have finally heard enough demands to explain why Californians are paying a dollar more per gallon for gas than the other lower 48 states

Gov. Gavin Newsom directed the California Energy Commission to look into possible irregularities in the state’s gas prices, which have recently soared above $4 per gallon.

“Independent analysis suggests that an unaccounted-for price differential exists in California’s gas prices and that this price differential may stem in part from inappropriate industry practices,” Newsom wrote

https://www.sfchronicle.com/business/article/Newsom-calls-for-investigation-into-13789550.php

Will there be an answer? Probably not. Is this simply putting pressure on the powerful people that decide how much the price of gas will be, so the Governor has leverage to get them to do something for him, in exchange for not uncovering their illegal activities, and bringing charges against them? Probably.

 After all, a dollar a gallon extra, for the past year, has made some company fantastic profits, and if the other 49 states figure out how to charge an extra dollar per gallon of gas, that will change a lot of driving habits and family budgets across America.

Can you imagine paying 25% more for every tank of gas? California and Hawaii don't imagine it, they are stuck with it, and have been stuck with it for years.... even though California produces a lot of oil, there are very few refineries, and for some reason, no one has created any new refineries.

Why haven't they? Maybe because the operating refinery companies pay the politicians with election campaign donations to prevent competition in refineries. Or maybe the environmentalists have prevented new refineries.

Whatever the reason, there isn't cheap gas, because there aren't an abundance of refineries, and so there is a limit on how many companies are producing gas, and they can charge more for a scare amount of gas.

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