Why Californians pay more for gasoline

In addition to paying high taxes on gasoline, there are other reasons why Californians are paying more for gas than everyone else, the San Francisco Chronicle tells us:

In 1996, California started using its own unique fuel blends to combat air pollution in smog-prone cities. The plan worked, but with a serious, unintended consequence. No other state adopted California's fuel standards, so the state became a kind of energy island, its economy dependent on gasoline blends found nowhere else.

At the same time, the number of refineries in California was shrinking. In the 1980s and early 1990s, West Coast refineries were dealing with low profit margins, and smaller ones had been closing. More shut down rather than make the expensive upgrades to produce the new gas, upgrades that could cost as much as $400 million per refinery.

As a result, California came to rely on a limited number of refineries, most of them in the state. The special fuel blends also cost more to make than did regular gas. The current estimate is 5 to 15 cents more per gallon.

Flash forward to 2008. As the global economy staggered last fall, some refining companies started cutting the amount of gasoline they made nationwide, because drivers weren't buying as much fuel.

Environmentalists want to bring these California standards to the other 49 states. Meanwhile, it's been thirty years since a refinery has been built in the United States.

Drill here, drill now, pay less. And build refineries.

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