So we're STILL switching over from winter to summer gasoline?

[babylonsister]

That's what a talking TV head is saying; does anyone recall this being a valid explanation for increases in gas prices in the past? And how the hell long does this process take?

[Horse with no Name]

1. They can get away with it

That is why they do it.

[Gold Metal Flake]

2. No, it's the taxes.

Gasoline taxes have not increased, but that's why the gas prices have doubled since 2000. In fact, a DUer will be along any minute to tell you that. :eyes:

[jobycom]

5. Should we call those

pseuDUers?

[RaleighNCDUer]

3. No, we're switching from a repug administration to a dem administration.

The 06 elections was the warning buzzer, so the oil companies are grabbing everything they can before the repugs lose the WH as well - the more they steal now, the more they've have safely hidden before the dems land a windfall profits tax on them after the next election.

[Hobarticus]

4. Sometimes, the most obvious answer is the right one...

...and I have to admit, this has crossed my mind too.

[Bitwit1234]

6. I heard the refineries were shut down and are not re-opened.

Why is it, with all the darn money these companies are making they can't keep a refinery running smoothly. They could if they wanted to, it is just an excuse they give when they want to raise the price of gasoline.

What they should do is appoint an independent committee to oversee what is happening in these refineries and make they justify every single price raise.

And can someone explain this. A truck pulls up to the gasoline station fills the storage tank up. The company pays xxxx dollars. A few days later they raise the gasoline ten cents a gallon. How come the gasoline in the tank that has been bought and paid for at xxx dollars have to be raised ten cents and the company has not paid extra.

[HereSince1628]

9. It's called manipulation. The great advantage of oligopolies and monopolies

The profitability of this in the retailing transportation fuels is obvious.

I expect the next new "refineries" to be built by either Peabody or Arch Coal for solid to liquid fossil fuel conversion.

[magellan]

7. "How the hell long does this process take?"

As long as they need it to to cover up their massive profit-taking.

[Le Taz Hot]

8. Yes, and we in California were

recently told that the refineries that were in New Orleans still aren't back online which is one of the reasons gas prices are so high. Great, except for the fact that California has never gotten it's oil from New Orleans refineries. But did the media call them on it? Nope.

Gas is now at $3.35 a gallon here and rising.

[LiberalFighter]

11. This is given as reason for California's higher gas prices...

And appears to support your statement that California doesn't receive gas from NO or at the least little if any.


Why California Gasoline Prices are So High?
by
Frank A. Wolak
Department of Economics
Stanford University

There are two primary explanations for the higher wholesale margins that have parallels to the causes of high margins in wholesale electricity production and sales during the summer and autumn of 2000. The first is the increased cost of producing gasoline. Many refineries are currently operating close to capacity. In addition, California refiners are required to produce California Air Resources Board (CARB) gasoline, the cleanest burning gasoline in the world. Finally, California refineries are required to satisfy stringent environmental standards. All of these factors are likely to increase the cost of producing gasoline.

The second possible explanation for higher wholesale margins stems from the fact that the gasoline refining industry in California is highly concentrated. Six refiners own more than 90 percent of the refining capacity in the state and four refiners own almost 70 percent. This limits the number of suppliers that retailers in California can buy from. In addition, CARB gasoline can currently be produced by only a few refineries outside of California, which further limits the competition in-state refiners face.

For both of these reasons, there are fewer independent refiners able to supply retailers in California relative to other parts of the US. Less competition among suppliers typically means that these suppliers are able to achieve higher selling margins. This market outcome appears to be the case for the California gasoline market, although it is very difficult to determine precisely how much of the increased margin between the price of oil and the price paid at the pump is caused California’s less competitive wholesale gasoline market. As I discuss below, there are number of steps California policymakers can take to increase the competitiveness of the refining and wholesaling industry in California.

[LiberalFighter]

12. From California's Energy Commission website

Where does our oil and gasoline come from?

California consumes substantial amounts of gasoline - about 16 billion gallons per year! Crude oil is made into gasoline, and the crude comes from within-state oil wells (39.46%), Alaska (20.16%) and foreign sources (40.39%).

Most (about 90%) of our gasoline is refined in-state, but additional quantities of gasoline and blending components are imported because refining capacity cannot keep pace with growing demand.

California is also isolated from other refining centers in the United States. Because most of California is designated by the federal government as an air quality "non-attainment" area, our gasoline must meet stringent air quality requirements to burn cleanly to protect public health and the environment.

[gratuitous]

10. Be fair . . .

I don't think anyone could have predicted that the Earth would move far enough around the Sun so that Winter would give way to Summer this year. And it could have happened at any time. Or it might not have happened at all. And what do you expect when two Texas oilmen are put in the White House?

We are fucking retarded.

[nancyr]

13. Wait until it hits $4.00!

It won't be long now with it going up 15 cents a day. There is nothing to stop them. Greed has no limits.

[RB TexLa]

14. Lowered demand would, but demand and use hasn't gone down

It didn't go down when gas first went over $3 and it hasn't now. The $3 price is easily sustainable.

[babylonsister]

15. 8 different blends, 12 different states (per talking heads) and why

is this suddenly a major problem? I don't recall prices rising to this degree this time of year in the past.

[underpants]

16. Plus the fact that these costs are considered in the price

the price ALL year. This is BS excuse.



http://journals.democraticunderground.com/underpants/45

[meldroc]

17. The shiek needs a new jet.

And he's wanting to spring for an A380 - after all, how are you going to fit your entourage in a 767?

Must be rough for them...