California gas prices

[G-Pete]

Who puts the price tag on the gallon of fuel?

Refineries? Politicians? Oil Companies?

NO, No and NO.

Before the gasoline hits your gas tank the oil was traded about 60 times. When investors pull cash out of the market the gas prices become low. When the market gets cash flow - the futures going up.

Insiders and their friends pulled cash in spring of 2008 from the futures. The result was an average gas price Summer 2008 of $1.81 - the real gas price.

Taking 100 billion dollar and invest in futures in three month spread, keep it with a small profit (just of the cost to move funds around) the government could keep the gas prices easily under $2 a gallon.
After 3 month you start the same cycle again. This boosts the economy and avoid to bankrupt the country.
Even your ordinary buns for breakfast increased by 30%, they claimed gas prices for the increase (it's a lie but this is besides the point) - they never came down afterwards.


To answer the question why CA has the high gas prices: because they "cook" a special blend --- reformulated gasoline program.
That puts the CA refineries in a bind because they "can't keep up with the demand". Which is set 90 to 120 days before - remember the futures?

And...a state sales tax of 2.25% on top of an 18.4 cent-per-gallon Federal excise tax and an 35.30 cent-per-gallon State excise tax.

So, it's a triple hit for the Californians - State, big bucks investors and their own refineries.

The refineries claim the high transportation cost. Hey, just drill for oil 6 miles a shore and tap into the massive reserves. About 300 years worth and the gas prices would be lower than the rest of the lower 48.