California’s Gasoline Prices

Oil field shutdown likely to hike state’s gas prices – Sunday’s shut-down of a major Alaskan oil field will likely push California’s gasoline prices higher. I remember, last week I filled my tank with a price of 2.99$ per gallon of regular. That’s the best rate I received in the last couple of weeks.
(1 Gallon is equal to 3.785 Litres roughly and Gasoline in US is called as Petrol in India).
Now this news on Gasoline price hike is coming up again. But why do Gasoline prices fluctuate?
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As the picture indicates, the cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. Understandable with Mid-East tensions, and with the supply and demand, the crude oil prices worldwide has been climbing up. But can’t the government cuts the taxes it levies? (roughly 23% of gasoline price we pay in the form of tax).

Californians typically pay more than the residents of neighboring states, the result of high California taxes and the relatively small number of refineries that make the state’s gasoline. Now adding up the local county taxes makes it makes it even more difficult. Am afraid further increase in Gasoline prices, will change the way people live their lives.

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