sleeper
Former LOD President
RE: Gas prices set record on penny-a-day climb
[div class="dcquote"][strong]Quote[/strong]
...This defies explanation...[/div]
No it doesn't. Y'all have some of the most stringent environmental laws in the country. And in general, it's extremely expensive to do business in your state because of this, and because of Californias entitlement system. Also, i'll bet that some kind of special fuel formulation is required there, as in many other states.
I'm sure greed plays a role in fuel prices, but there are a number of other factors that cause high gas prices (and allow certain companies to make more profits). Low refinery capacity in the US, coupled with a recent refinery explosion, for one. Ironically, the reason we have such low refinery capacity is because the low price of gasoline did not make it profitable enough for more refineries to be built, so the high gas prices may help in this area. Also, instability in Venezuela and high demand from China are contributing to the high gas prices we are seeing.
Transportation costs and local taxes are the main reason gas varies from state to state. All the gas coming into Michigan flows through one major pipeline, and when they switch over from the winter formula to the summer formula, it usually results in a supply interuption that drives gas prices up for a short time. They usually time this right around Memorial day, so that gas prices jump about $.50 a gallon right before the holiday.
Steve, by "rest of the world" i mostly meant Europe. You're right, there are plenty of countries with dirt-cheap gas.
[div class="dcquote"][strong]Quote[/strong]
...This defies explanation...[/div]
No it doesn't. Y'all have some of the most stringent environmental laws in the country. And in general, it's extremely expensive to do business in your state because of this, and because of Californias entitlement system. Also, i'll bet that some kind of special fuel formulation is required there, as in many other states.
I'm sure greed plays a role in fuel prices, but there are a number of other factors that cause high gas prices (and allow certain companies to make more profits). Low refinery capacity in the US, coupled with a recent refinery explosion, for one. Ironically, the reason we have such low refinery capacity is because the low price of gasoline did not make it profitable enough for more refineries to be built, so the high gas prices may help in this area. Also, instability in Venezuela and high demand from China are contributing to the high gas prices we are seeing.
Transportation costs and local taxes are the main reason gas varies from state to state. All the gas coming into Michigan flows through one major pipeline, and when they switch over from the winter formula to the summer formula, it usually results in a supply interuption that drives gas prices up for a short time. They usually time this right around Memorial day, so that gas prices jump about $.50 a gallon right before the holiday.
Steve, by "rest of the world" i mostly meant Europe. You're right, there are plenty of countries with dirt-cheap gas.