Thursday, March 29, 2007

Preach it brother!

Stan in Santa Maria takes a different--and I would argue refreshing--tack in this gripe-fest about the recent increase in gas prices on the Central Coast:

For gasoline consumers to better understand the cost of a gallon of gasoline, a few facts may help clarify what goes into making up the price that we pay at the pump.

California mandates that all gasoline must meet higher standards than required by federal standards. Thus, the gasoline produced here is available in very limited quantities from sources outside the state. When our supply and demand is out of balance, due primarily to refinery maintenance and occasional process interruptions, our specially formulated gasoline must acquired at then-prevailing prices and shipped in from out of state. Buying commodities at near-term spot market prices is not cheap. In addition to our state-mandated boutique gasoline formulation, our air-quality gurus have mandated that we also must add ethanol to each gallon. Ethanol is not produced here and must be acquired and shipped in from Midwestern producers. Ethanol requires special tank cars, storage in special tank facilities and blending into the finished gasoline, adding about 15 cents to the cost of a gallon.

Our fuel formulation requirements are not enough to cause our higher prices and, indeed, there is more to the story. A significant part of the price we pay at the pump is for taxes. California is among the higher-taxed states and, true to form, we pay among the highest gasoline taxes in the country. State and local taxes add about 24 cents a gallon, while the feds collect another 18 cents. Taxes make up about 20 percent of the price at pump and, guess what, the county sales tax is effectively indexed to the total price because it is charged on top of all the other costs and taxes! I wonder why we don't hear much about gouging from our local politicians?

So, when we feel the need to complain about high gasoline prices, let's not forget to direct some of our unhappiness toward local, state and federal politicians and air quality elites as well.

No comments:

  • Better Living: Thoughts from Mark Daniels
  • Evangelical Outpost
  • One Hand Clapping
  • Camp Katrina
  • TPMCafe
  • Dodger Thoughts
  • Boy of Summer
  • Irish Pennants
  • tabletalk
  • Fire McCain
  • My Sandmen
  • Galley Slaves
  • Michelle Malkin
  • myelectionanalysis
  • Iraq the Model
  • Mystery Pollster
  • A Bellandean! God, Country, Heritage
  • Right Truth
  • The Fourth Rail
  • Counterterrorism Blog
  • Just One Minute
  • Broken Masterpieces
  • Kudlow's Money Politic$
  • Econopundit
  • Tapscott's Copy Desk
  • The Blue State Conservatives
  • Palousitics
  • Christian Conservative
  • Outside the Beltway
  • The Belmont Club
  • Froggy Ruminations
  • The Captain's Journal
  • Argghh!!!
  • Chickenhawk Express
  • Confederate Yankee
  • Reasoned Audacity
  • Taking Notes
  • ThisDamnBlog
  • Three Knockdown Rule
  • Dogwood Pundit
  • Dumb Looks Still Free
  • Unfettered Blather
  • Cut to the Chase
  • Alabama Improper
  • Austin Bay Blog
  • Michael Yon-Online
  • The Trump Blog
  • A Lettor of Apology
  • GM Fastlane Blog

  • Powered by Blogger

    Listed on BlogShares Who Links Here