Why are Gasoline Prices Still High?

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By an edhat reader

So as always, why is it that oil has now gone into a negative, that every single gas station in Santa Barbara/Goleta still just under $3.00? The national average is hear is $1.77 and in some places a dollar.

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Get over it Apr 24, 2020 10:41 PM
Why are Gasoline Prices Still High?

Even if the oil is at $0. As said before you start at $.80 ish plus local sales tax per gl. Add in refining, transportation, sales, and whatever all goes into getting into our convenient pump. Add everyone's profit and the, it's Santa Barbara factor. I'm surprised we don't pay more! I'm super happy to be paying $2.75 right now!

Nature Boy Apr 23, 2020 11:19 PM
Why are Gasoline Prices Still High?

The only deciding factor in gas prices, now and always, is “Supply and Demand”. Gas prices are the most basic real-time example of this economic concept.

CPlocal Apr 23, 2020 06:22 PM
Why are Gasoline Prices Still High?

Two weeks ago, the gasoline price at Costco in Simi Valley was $2.35 a gallon. It's Santa Barbara that's keeping the prices high.

jak Apr 24, 2020 12:56 PM
Why are Gasoline Prices Still High?

Even subtracting out the rather high taxes on gas in California, that Costco in Simi Valley was still charging DOUBLE what a lot of Costco’s in other parts of the country are charging once you subtract out their taxes. I can buy untaxed gas right now for $1.20/gal and diesel for $1.48. And I’m out in the middle of nowhere and pay 15-20% more than the folks in the cities. Taxes add about 40 cents to these prices which is pretty much exactly what I pay to put gas in my car.

RHS Apr 23, 2020 04:15 PM
Why are Gasoline Prices Still High?

There have been numerous reports about the mysterious 30-50 cent gap in the price of gasoline in CA for decades. This is money that is taken by the refiners above the cost of production. The legislature has been asked to look into this but the oil companies have blocked investigation every time. Because they have a lock on refining in CA (only a few plants and no competition) they get away with it and huge profits result. This morning's LA Times referenced this again and pointed out that the companies are almost totally out of the retail business. The amount of money the vendor makes per gallon is pretty small potatoes compared to that Chevron and friends manage. Yes, our prices are higher due to formulations that protect our health and taxes that pay for our roads but that is not the scandal.

Get over it Apr 24, 2020 10:34 PM
Why are Gasoline Prices Still High?

I can't imagine why the oil companies want to try to gouge us... Just payback I'm guessing. I'm more than happy with less anything oil in our area. Full NIMBY when it comes to that, but we are a bunch of hypocrites here. We don't stop using it and don't care where it comes from or who/what it affects as long as it doesn't affect me!

Happy2BeSB Apr 25, 2020 11:53 PM
Why are Gasoline Prices Still High?

Chip of SB @ 04:43, please cite a source proving any of the cobalt Tesla uses comes from child labor. Note that Cobalt is also used in cell phones, aircraft engines, integrated circuits, hard disks, guitar pickups, etc. Xantus @ 05:08, gas car fires occur at a far higher rate than a Tesla or any other EV. Most of the Tesla fires occurred in very high-velocity crashes into a wall or tree. However, a Tesla won't immediately explode like a gas car does. The batteries will smolder at first allowing passengers to exit. The unfortunate deaths in the Tesla crashes were due to internal injuries from the collision after speeds in excess of 100 mph.

macpuzl Apr 24, 2020 11:11 PM
Why are Gasoline Prices Still High?

GOI @ 10:26 - Here is will mostly come from renewables, and soon (if we're smart), not only renewable, but carbon-free. Can't do that at all with a petroclunker.

Xantus Apr 24, 2020 05:08 PM
Why are Gasoline Prices Still High?

to say nothing of the Tesla's very fine Barbeque Impersonation ... just pray you never get in a collision of any serious nature.

Chip of SB Apr 24, 2020 04:43 PM
Why are Gasoline Prices Still High?

In order to keep the cost of your Tesla low, scores of children have died working in Congolese Cobalt mines. In addition, great numbers of Congolese children have birth defects due to the widespread uranium contamination that is caused by Cobalt mining. That's just the impact of the cobalt, think of the other materials needed to make your battery. Perhaps there is some cost benefit to EVs in some situations, but there is definitely not an environmental or humanitarian benefit.

Happy2BeSB Apr 24, 2020 04:36 PM
Why are Gasoline Prices Still High?

Lithium-ion batteries can be recycled. They are almost never dumped. I know of people who buy old Nissan Leaf battery modules and use them as solar backup batteries. Most automotive-grade lithium hydroxide used for US EVs comes from briny (and undrinkable) groundwater that is pumped into large evaporation ponds, so the environmental impact is minimal. I know that companies like Tesla work very hard to ethically source their cobalt from non-conflict sources. Tesla has been steadily improving their battery chemistries and reducing cobalt content. Their next-generation batteries will likely have zero cobalt. In sharp contrast, we've all seen how hard Covid-19 has hit locations with significant pollution problems. EVs use energy much more efficiently than internal combustion engines, and electric generation is becoming cleaner every year. It's clear that replacing gas cars with EVs is a tremendous net benefit to our environment.

Happy2BeSB Apr 24, 2020 04:36 PM
Why are Gasoline Prices Still High?

Lithium-ion batteries can be recycled. They are almost never dumped. I know of people who buy old Nissan Leaf battery modules and use them as solar backup batteries. Most automotive-grade lithium hydroxide used for US EVs comes from briny (and undrinkable) groundwater that is pumped into large evaporation ponds, so the environmental impact is minimal. I know that companies like Tesla work very hard to ethically source their cobalt from non-conflict sources. Tesla has been steadily improving their battery chemistries and reducing cobalt content. Their next-generation batteries will likely have zero cobalt. In sharp contrast, we've all seen how hard Covid-19 has hit locations with significant pollution problems. EVs use energy much more efficiently than internal combustion engines, and electric generation is becoming cleaner every year. It's clear that replacing gas cars with EVs is a tremendous net benefit to our environment.

Happy2BeSB Apr 24, 2020 04:20 PM
Why are Gasoline Prices Still High?

SCE EV rate plan charges $0.15/kWh. For my Model 3, that works out to 3.5 cents per mile. The only maintenance I've had done in two years of ownership is wiper fluid and a tire rotation. Total cost of ownership for EVs is much lower than comparable gas cars. Maintenance/fuel costs are lower. Gas car resale values are plummeting, Tesla's are not. EV reliability is better, meaning fewer out-of-warranty repairs. I usually charge it on weekend mornings when solar accounts for more than half of the state's grid generation. Also, Toyota Corollas start at $19,600. Tesla Model 3 starts at $39,990. The 5-year cost of ownership is more than $5,000 less than a Toyota Camry. Not to mention Model 3 is the safest car ever tested by NHTSA. It's also the most fun car I've ever driven. You get a lot of bang for your buck. Source for cost of ownership: https://cleantechnica.com/2019/09/27/tesla-model-3-vs-toyota-camry-5-year-cost-to-own/

macpuzl Apr 24, 2020 12:42 PM
Why are Gasoline Prices Still High?

More misinformation, as usual. The subsidies and environmental costs of petroleum fueled vehicles are ignored. =========================================================================== https://www.carbonbrief.org/factcheck-how-electric-vehicles-help-to-tackle-climate-change =========================================================================== http://www.ucsusa.org/clean-vehicles/electric-vehicles/ev-emissions-tool#.VuolayjPb8t =========================================================================== http://www.climatecentral.org/news/a-roadmap-to-climate-friendly-cars-2013-16318

Chip of SB Apr 24, 2020 09:18 AM
Why are Gasoline Prices Still High?

I agree 88. And that's without even considering the cost of the battery. Electric cars also have a tremendous environmental and humanitarian impact that a lot of people seem to gloss over. Cobalt is just one of many materials needed to manufacture EV batteries. Here is a WAPO article about the impact of cobalt mining, which is predominantly done in the Congo. https://www.washingtonpost.com/news/in-sight/wp/2018/02/28/the-cost-of-cobalt/ Then consider the impact of Chinese lithium mining, battery disposal, etc. I would much rather buy fuel produced in the USA in accordance with our environmental and labor standards.

sacjon Apr 23, 2020 04:52 PM
Why are Gasoline Prices Still High?

Roger - thanks for reminding me. Now off to get some high gas to get some high times! This whole virus thing has taught me to truly enjoy cannabis and cbd!

Chip of SB Apr 23, 2020 12:06 PM
Why are Gasoline Prices Still High?

Our gasoline could be the cheapest in the US, but California will not allow it. Here is an LA times aritcle about why our gas is so expensive. https://www.latimes.com/business/la-fi-gasoline-manipulation-infobox-20150706-story.html Perhaps the governor could relax the requirements on fuel formulations and waive the taxes to help ease the cost burden on Califonria's poorest families? Perhaps he could waive vehicle registration fees, taxes on utilities, etc.? Nope! That won't happen! How come California always shafts the poor?

a-1594207970 Apr 23, 2020 02:31 PM
Why are Gasoline Prices Still High?

I'm a "lefty liberal" and I agree 100% with what you are saying 12:26. Sadly what's missing from a lot of liberal legislation is common sense...

a-1594207970 Apr 23, 2020 12:26 PM
Why are Gasoline Prices Still High?

It is interesting many of the same people who want to help the low incomed are at the same time environmentalists who want higher/high taxes on gas for the older cars those low incomed folk drive. Few of low income folks can afford the Prius and other hybrid models, even with the tax reductions that the high incomed folk receive.

a-1594207970 Apr 23, 2020 12:11 PM
Why are Gasoline Prices Still High?

Most every place shafts the poor. Bad air also shafts the poor. Who lives right by the freeways? Mostly poor folk. Some of the fuel regulations have to do with reducing pollution.

a-1594207970 Apr 23, 2020 12:05 PM
Why are Gasoline Prices Still High?

Drove home via the I-5 this week and gas was as low as $0.99 a gallon in the central valley. We get robbed in a little market like Goleta/SB where there is no competition.

macpuzl Apr 23, 2020 06:50 PM
Why are Gasoline Prices Still High?

Xantus - There is no gas at a lower price. And if they lowered the price, they could stimulate demand. See how it works in the non-fantasy world?

Xantus Apr 23, 2020 04:12 PM
Why are Gasoline Prices Still High?

oh MAC. it's adorable how much you try, but perhaps you could try a little harder. if the gas stations have not pumped out their storage tanks (due to low demand) then they've had no reason to buy new gas at it's lower price. -- https://oilprice.com/oil-price-charts/block/8 -- now look at the price history and educate thyself. it's not like oil is still negative.

PitMix Apr 23, 2020 03:07 PM
Why are Gasoline Prices Still High?

I (used to) drive between SB and LA occasionally and although Arco gas prices in LA are usually 20 cents cheaper, prices at the Arcos in Ventura and SB are about the same. So the market seems pretty competitive unless you are talking about the gas stations along Storke which are really expensive.

a-1594207970 Apr 23, 2020 02:19 PM
Why are Gasoline Prices Still High?

Hmmm. Don't think it's demand. Let's permit a Costco gas station and find out how fast local gas stations drop their prices.

a-1594207970 Apr 23, 2020 02:16 PM
Why are Gasoline Prices Still High?

1205 here again. It was one of those big truck stops north of Bakersfield and south of Los Banos. Pretty much just the gas stations and a few fast food places. Huge billboard with the price that can be seen from the highway. No idea if it was a promo. Filled up for less than 15 bucks.

PitMix Apr 23, 2020 01:40 PM
Why are Gasoline Prices Still High?

Gas buddy says cheapest average gas price is in Fresno at $2.50/gal. No way you saw $0.99/gal unless it was some kind of give-away promotion at cost. You should provide a link or a retraction to your assertion.

Xantus Apr 23, 2020 12:50 PM
Why are Gasoline Prices Still High?

" We get robbed in a little market like Goleta/SB where there is no competition." the word you are looking for... is Demand. people as a whole are doing way less driving than before due to so many businesses closing.

a-1594207970 Apr 23, 2020 11:59 AM
Why are Gasoline Prices Still High?

Calif gasoline tax is 61.2 cents/gallon, plus fed gas tax of 18.4 cents/gallon, and then Calif/County/City sales tax is added on top of that (8.75% in city of SB I think). Ka-ching.

RHS Apr 23, 2020 06:26 PM
Why are Gasoline Prices Still High?

Chip, with respect, "supply disruption" is the euphemism that they use to screw us on price. Every time they change formulas, every time a fire occurs, every time supply is altered they use it as an excuse to raise prices. This is the scheme to hide their greed behind claims of high taxes and such. If there was actual competition in this industry things might be different. On the other hand, it is satisfying to watch Russia and Saudi Arabia get into over this stuff.

Chip of SB Apr 23, 2020 12:24 PM
Why are Gasoline Prices Still High?

Its the special California requirements for formulation. Makes it more expensive to refine, and very few refineries can produce our fuel so we are vulnerable to supply disruption.

a-1594207970 Apr 23, 2020 11:46 AM
Why are Gasoline Prices Still High?

The gasoline at the pumps now was processed when oil prices were high. That -$40 barrel low may affect the price of gasoline prices, but not for a while. Santa Barbara gasoline cost has always been higher than nation’s average.

PitMix Apr 23, 2020 01:42 PM
Why are Gasoline Prices Still High?

Rex, and where are the government regulators that are supposed to be watching out for us when this happens? Probably don't mind high prices to increase their sales taxes?

REX OF SB Apr 23, 2020 11:52 AM
Why are Gasoline Prices Still High?

What's interesting is that when oil prices drop, it takes a while for lower prices to be noticed at the gas pumps; HOWEVER, if oil prices suddenly spike, the pump prices are higher the very next day. Notice that every time there is a California oil refinery fire that temporarily stops production, the pump price is always at least several cents higher within the week. Every. Single. Time.

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