here we go again.....Oil settles near $85, higher fuel costs ahead
04-02-10, 10:25 AM
#22
Lexus Champion
Thread Starter
04-02-10, 07:23 PM
#25
Lexus Fanatic
CA fuel prices, thanks to CARB and the special blends they require in CA to address the L.A-area smog, are usually higher than in most other states. That is because oil companies have to spend more money on refining and distillation of these special CA blends, which lowers their cost-effectiveness.
04-02-10, 07:29 PM
#27
Lexus Fanatic
I suspect, though, that oil prices, nationally, will dip a little in the short run in response to Obama's recent announcement of expansion in the domestic oil-drilling areas. Even though we will not likely actually see any new domestic oil being pumped for a few years, the oil industry is highly speculative, and investors drive prices up and down with their reactions to daily news. At one time OPEC pretty much called the shots, but their influence has waned in recent years.
04-03-10, 09:49 AM
#28
Lexus Fanatic
CA fuel prices, thanks to CARB and the special blends they require in CA to address the L.A-area smog, are usually higher than in most other states. That is because oil companies have to spend more money on refining and distillation of these special CA blends, which lowers their cost-effectiveness.
Last edited by IS-SV; 04-03-10 at 09:57 AM. Reason: sp
04-03-10, 10:04 AM
#29
Lexus Fanatic
Not really. You would be surprised at the number of people who don't realize that gas is more expensive in CA, and why. Many of them, when they first see the pump prices, think it is just oil-company price gouging.
Of course the blend alone doesn't count for the difference. Local pump prices also depend on the costs of running local gas stations.....utility costs, labor costs, property/buisness taxes, advertising (if applicable), maintence/repairs, etc....
But, in general, for all of these reasons and more, one can normally expect, on average, to pay more for gas in CA than in many other states. It's a shame, because many parts of CA are already expensive enough to live in anyway for other reasons (especially real estate), but a fact of life.
and it's not especially accurate or complete. The blends address more than LA-area smog. And that doesn't explain all the price difference between Silicon Valley, CA and other states.
But, in general, for all of these reasons and more, one can normally expect, on average, to pay more for gas in CA than in many other states. It's a shame, because many parts of CA are already expensive enough to live in anyway for other reasons (especially real estate), but a fact of life.
04-03-10, 10:08 AM
#30
Lexus Fanatic
I've already stated why I think prices won't be too bad in the short run (though, as noted, they can be quite volatile based on daily news events), but if they DO go up in the long run, at least, with the new CAFE standards coming, each gallon you pay for, on the average, should go farther.