California Gasoline Is More Than Double the Price in Texas, What Do You Pay?

October 1, 2022

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3:10 pm

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61 comments

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Economics

According to the AAA, the National Average Gas Price on October 1, 2022 is $3.80.

California lead the nation in price at $6.358 per gallon. That’s more than double the price paid in Texas, Mississippi, and Louisiana. Its nearly double the price paid in eight other states.

Oregon has the second highest average price at $5.41 per gallon. That’s about 95 cents less than California pays.

Mono County California has the dubious distinction of the highest county in the highest state at $6.937 per gallon.

Gavin Newsom’s Gas Price Premium

Please consider Gavin Newsom’s Gas Price Premium

Cash-strapped Americans have received relief from falling gas prices in recent weeks, but not Californians. The average gas price in the Golden State this week surged to $6.29 a gallon—$2.50 more than the national average—and the reasons are worth distilling since Gov. Gavin Newsom wants to export the state’s energy policies nationwide.

Taxes add about 66 cents to the price of a gallon, about twice as much on average as other states. California’s cap-and-trade program and low-carbon fuel standard add roughly another 46 cents a gallon.

These climate regulations are causing refineries to shut down or convert to producing biofuels that are more profitable because of rich government subsidies. California lost 12% of refining capacity between 2017 and 2021 and is set to lose another 8% by the end of next year. Yet refineries outside of the state can’t produce its supposedly greener fuel blend.

So when California refineries experience problems, gasoline supply becomes tight and prices shoot up.

“If you’re a (refiner) on the Gulf Coast, your gross profit on gasoline is about $6.60 (per barrel of oil). If you’re in Los Angeles it’s about $101,” Tom Kloza of the Oil Price Information Service told the Mercury News.

Expect California Governor Gavin Newsom to run for President in 2024.

If you want to pay higher prices for everything, he’s the man to root for.

This post originated at MishTalk.Com

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61 Comments

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RedQueenRace

1 year ago

In Florida a gas tax holiday for the month of October is in effect, so today I filled up at $2.93 / gallon in the north central portion of the state.

The tax amounts to $0.25 so with the tax I would have paid $3.18.

BDR45

1 year ago

N. Florida. Between $3.34 and $3.50.

Casual_Observer2020

1 year ago

I paid 5.75 on Friday. I average about 8000 miles per year per vehicle on two vehicles since our “commute” to work is less than 1 mile. We drove to the coast this weekend.

It would be easy to get the price of gas down if commodity futures were regulated like they were in the 90s. The banksters have been in control of our economy since then and this is why productivity growth which actually raises the standard of living has been effectively zero. We have a zero sum economy in a lot of ways since the 90s because speculators raising the cost of living via derivatives and futures.

Jojo

1 year ago

Reply to Casual_Observer2020

Newsom just signed a bill to allow refineries to sell the winter mix gas a month early (Oct 1 vs. Nov 1). Should reduce pump prices by 15-30 cents/gal.

No one has yet adequately explained why gas in CA costs double other places in the USA.

JimK

1 year ago

In central Calif.

$5.50/gal for premium 3 weeks ago.

$6.71/gal today (same station).

Jojo

1 year ago

My car requires premium gas. I was surprised a few days ago when I went to Costco to fill up and paid $6.05/gal. Three weeks ago I paid $5.20 at the same store.

The newspapers are putting the blame on, as usual, refineries shutting down for maintenance and the hurricane, even though I don’t think oil from the gulf makes its way to CA in any noticeable volume.

Why refineries would shut down for maintenance with a hurricane approaching and in the middle of Putin’s Folly war is beyond me. It’s almost like giving the middle finger to their customers.

vanderlyn

1 year ago

i don’t buy gasoline. i walk or take the nyc subway trolley system.

RonJ

1 year ago

Speaking of Governor Newsom, he has signed unconstitutional AB2098 into law. AB2098 forces doctors to lie to their patients about Covid-19, or face the risk of losing one’s license to practice medicine.

I will simply ignore anything that a California doctor says about Covid-19.

Zardoz

1 year ago

Reply to RonJ

You ignore anything but what Tucker tells you already.

RonJ

1 year ago

Reply to Zardoz

I do ignore the MSM, as they never warned the public how dangerous Remdesivir is.

vanderlyn

1 year ago

Reply to RonJ

isn’t tucker carlson the epitomy and poster child of main stream media. or is murdoch media actor something i am missing. my lord, that did make my day funnier than ever. thanks for the great chuckle.

RonJ

1 year ago

Reply to vanderlyn

I recently watched a video of a compilation of mainstream local news anchors parroting “danger to our democracy.” Now that is funny.

When Carlson says the term, he is being sarcastic toward those parroting it. So no, he is not a poster boy for mainstream media.

vanderlyn

1 year ago

Reply to RonJ

doctor google will serve you well. i am quite certain.

hmk

1 year ago

Reply to vanderlyn

cnn and msdmc will serve you well also.

TexasTim65

1 year ago

I pay the Florida price. I was never happier than when I left California after living there for 2 years.

Idiotic gas policies there have caused Californians to have to self-rely on refining their own gas in the same way Texas self-relies on their own energy.

It’s understandable why California wants to go all Electric in 10 years because their policies have all but ensured there won’t be any gas refined there so they will be screwed if they aren’t all electric or will have to relax their refining policies to allow in gas refined elsewhere.

Incidentally Newsom would make for an awful president.

Zardoz

1 year ago

Reply to TexasTim65

The hair alone might get him there.

vanderlyn

1 year ago

Reply to TexasTim65

show me a man that has that much state border love or hate, and i show you a man who has been divided and conquered by his betters. the ruling class of his empire. and old tale throughout the ages.

Casual_Observer2020

1 year ago

Reply to TexasTim65

Florida is so beautiful these days. I am sure there’s no place like it and it is heaven.

link to apnews.com

Doug78

1 year ago

Reply to Casual_Observer2020

The Paradise Fire in 2018 burned to death 85 people in California. Every year there are 30-40 people burned to death in wildfires there plus many more who die from the smoke inhalation in California and I don’t want to get into earthquake risks. California has risks and Florida has risks. Both are beautiful states but nowhere on the planet are we free of the wrath of Nature.

Roadrunner12

1 year ago

“These climate regulations are causing refineries to shut down or convert to producing biofuels that are more profitable because of rich government subsidies.”

Also not to be lost in the refinery conversions is that some feedstocks change from oil based to agriculture based. How does this affect food supply and prices as a result of agriculture products increasingly directed to be used as feedstocks for refineries as compared to crude oil?

LM2022

1 year ago

CA has a larger population, larger GDP, higher median income and has enforced environmental regulations that require a specific gasoline blend that burns cleaner – of course it’s more expensive here than Texas. If you want you can certainly spend less (and make less money) and go live in a toxic, flat, boiling hot parking lot like Houston, where I grew up. I have friends who made the move and didn’t listen when I tried to warn them and they have their regrets.

spasidechats

1 year ago

Reply to LM2022

I also lived in both states and you are correct, it depends on what you value. The heat never bothered me but I don’t live in a parking lot like you did. Nice wooded area, lots of shade, large pool, large home gym, large house and all for 1/4 of the price it would cost on either coast. Nobody ever enforced masked where I am either and food and gas prices barely went up. Going eat out tonight at a 5 star. I checked the prices and it wasn’t sticker shock from pre-shamdemic, maybe 10% increase.

xbizo

1 year ago

Reply to spasidechats

but aren’t enough progressives moving to Texas that things are being slowly Californiaized? They vote to create the problems they just left?

8dots

1 year ago

Last week the Dow tested ma200 before entering Nov 2/9 2020 gap. The Dow might close the gap before popping up, or plunge to the 25K/26K area.

Ian destroyed homes, cars and food supply. Zoomers hooked to the screen, avoiding reality, might enter the job market. Many

new immigrants will open new businesses. In the last 50 years, since 1974, less and less young people in their 30’s make more money than their parents. Ian and the sticky inflation will changed that. Zero interest are good for NDX, but 6% – 8% protect small businesses that

innovate. Many small businesses will flourish. The lazy zoomers, who imitate and herd together on the internet. will build wealth, get married, keep themselves busy and hate less. The expired boomers will leave behind millions of vacant apt/houses and cheaper stocks. Wealth

will rotate from boomers to zoomers…

Avery

1 year ago

This thread is useless without mentioning RBOB for baseline context.

The difference is mainly due to various fat politicians. Those government pensions must be paid.

Esclaro

1 year ago

California is always the favorite whipping boy. I have lived in Texas since 1991. When I came here Democrats controlled the state government and the quality of life was good. Since then it has steadily deteriorated. I-35 is a cluster f*ck from Laredo to Dallas. The electric grid is not functional. Crime has gotten worse. Taxes have skyrocketed so that we now pay more than California and Massachusetts. Hard to believe I know. The current “leaders” of state government say transgender girls playing sports is the real problem here. It will be good to leave this hell hole.

whirlaway

1 year ago

Reply to Esclaro

Exactly. Unless your income is in the top 3 or 4 percent, you are actually paying a higher overall tax rate in Texas than in California.

link to chron.com

Zardoz

1 year ago

Reply to Esclaro

They’ve learned from the newschannels. Make people angry, afraid, and self righteous, and they’ll follow you like Moses.

vanderlyn

1 year ago

Reply to Esclaro

ha ha ha. a truth teller. rare. hat tip to you. i have lived all over this big empire. TX is expensive place to live. not a great value proposition for what you get for huge r/e taxes etc……………..one pays. the joke is on the folks who cannot face reality that places change over decades.

RonJ

1 year ago

Reply to Esclaro

One of my neighbors grew up under Castro. He left California two years ago, because of what Democrats are doing to the state.

Over a dozen L.A. County cities have given a vote of no confidence in Soros D.A. Gascon, including Beverly Hills. It isn’t even safe there, anymore. It’s causing Ozzie Osborne to move back to Britain.

vanderlyn

1 year ago

Reply to RonJ

ozzie leaving? sounds like a plus for that hood.

Casual_Observer2020

1 year ago

Reply to Esclaro

I grew up in Texas. The potholes in my hometown are in the same place they were when I learned how drive. That was 33 years ago. There’s a homeless tent park under the highway exit. And unemployment feels higher because there is no tech economy in the suburb of Dallas I grew up in. The quality of life in Texas isn’t what it was in 80s or even 90s before globalization of the labor force. The traffic in large cities in Texas reminded me more of what Los Angeles was like. There is no such thing as off peak traffic from effectively 6am to 9pm.

MPO45

1 year ago

Out of curiosity and seeking ways to profit from this disparity I went over to the EIA site and pulled some data.

link to eia.gov

I ran a pivot table and it seems Texas has refining of 5.9 million barrels per day and California only has 1.7 million so using basic supply and demand theory it makes sense. California population is 39.6m Texas is 29.7m. The demand will be higher in California and the supply is lower so prices should be higher.

The top refiners by volume:

1. Marathon Petroleum – 2.9m

2. Valero – 2.1m

3. Exxon – 1.8m

4. Phillips 66 – 1.4m

5. Chevron – 1.0m

Not sure politics plays a big factor but people will believe whatever they want to feel better about themselves….

As for profit plays:

Marathon petroleum is trading at $99 and the October 21 2022 $100 strikes are selling for $4 or 4% return for 21 days. Not bad. Can’t wait till Monday.

Thanks Mish for finding me another profit opportunity. Loading up the money train on Monday.

Mish

1 year ago

Reply to MPO45

you are welcome

Good luck!

vanderlyn

1 year ago

Reply to MPO45

good stuff. i like to see more investment opportunities in the comments. much appreciated. i wish Mish would use his great intellect to give some investment ideas………….

RonJ

1 year ago

Yesterday, on local L.A. news: as a gas saving tip, it was suggested to remove items that add weight to the car, such as golf clubs, if not being used.

Fish1

1 year ago

I have paid zero for gas since Feb yet travel a lot. I have an e-car and it costs about $1 in electricity to go 25 miles. I won’t mention climate change because all the mid-west/east coast folks on these boards have done their own research and have discovered cc is a hoax.

Zardoz

1 year ago

Reply to Fish1

They also would buy a used car from trump, so take those opinions with a grain of salt.

Jojo

1 year ago

Reply to Fish1

But your car will be on a steep depreciation curve as your battery wears out. Expected life is 8-10 years. Also, the more you charge it, the faster the battery wears out.

Tesla14

1 year ago

Reply to Jojo

I drive an early 14 Tesla. Going on 9 years. Battery is at 91% of original capacity. Love it every day. The stock price is crazy though.

Jojo

1 year ago

Reply to Tesla14

Tesla Owner Blows Up Car After Discovering Cost To Fix Battery

Tuesday, Dec 21, 2021 – 03:40 PM

In Finland, an unhappy Tesla owner decided to blow up his Model S after learning it would need a new expensive battery pack.

In the video on YouTube with English subtitles, Tuomas Katainen explains his 2013 Model S was in the shop for more than a month for service. When he heard back from the shop, they told him they couldn’t repair his car, and the only option was to change the entire battery cell.

Katainen said the fix would’ve cost him upwards of €20,000 ($22,500). He told the dealership that was absurd, and he donated the car to a Finnish YouTube channel Pommijätkät, whose name literally translates to ‘Bomb Dudes.’

…

link to zerohedge.com

FooFooFed

1 year ago

Im in northern Ca. and can attest this is true 100%. To go a step further…the cost for business that use transport will be passed onto the consumer. Newsome sending out gas rebate checks this month. At this price you would think demand for gas would be squashed. Lots of cars on the highway but went to target last night and it was empty. So many clueless ppl here.

Zardoz

1 year ago

Reply to FooFooFed

Simplest solution: don’t drive all over the g-damn place all the time.

Jojo

1 year ago

Reply to FooFooFed

Sa Nike news today that they are severely overstocked with our-of-season inventory and will be clearing it out at reduced prices. I expect similar for other manufactures.

MPO45

1 year ago

Reply to Jojo

“clearing it out at reduced prices.”

More like sent to a landfill at some point.

Jojo

1 year ago

Reply to MPO45

Stores like Ross, TJ Maxx, Marshalls, etc. will be buying up the inventory to sell at discount prices. What they don’t sell will make its way to Africa and Asia where it is used, repurposed or goes to a landfill.

xbizo

1 year ago

Reply to FooFooFed

So many cannot afford to live close to work in CA. A 40 mile drive or an hour commute for 25 miles is not unusual to be able to find affordable rents and homes. At a certain gas price, it’s not worth the $600 per month to make the drive. People will take less pay to work closer to home or businesses pay more to keep the commuter work force. A lot of transition happens when gas prices do this.

Zardoz

1 year ago

I think it was 4.40 last time… I only fill up every 6 weeks or so, so I don’t really Think about the cost.

Crenvy

1 year ago

Reply to Zardoz

Because most of what you consume in goods and services do not depend on fuel costs? LOL

vanderlyn

1 year ago

Reply to Crenvy

mish did ask about gasoline prices. i think every human with half a brain understands petroleum prices and labor costs go into most things from A to Z. but alas, amerikans are cuckoo about gas prices. almost a chimp like response to a banana social experiment test.

MPO45

1 year ago

I pay $0 since I don’t have a car. Between insurance, repair/maintenance, taxes, parking, tolls, car washes, and capital costs it makes little sense to own one when you can just walk/bike or take a uber/lyft/taxi or rent a car for a day or two when really needed. There are also other car negatives: road rage, pollution, traffic anxiety, etc.

StukiMoi

1 year ago

Reply to MPO45

Hey man! As long as me and Bubba don’t have cars, why should we care? We’ll just take Uber! After all, how could it possibly affect us, whether those Uber drivers have to pay The Newsom Gang’s $10/ounze usury markup at the pump……

MPO45

1 year ago

Reply to StukiMoi

Well the correct answer is not have to consume so much. People in America spend money buying a giant SUV to drive to a giant box store to fill up their vehicle with “stuff” which then gets put in their giant house for a short period of time then ends up in the trash. Rinse & Repeat.

Eliminate the car and you eliminate that pattern of waste. I know, I used to have a giant SUV once upon a time.

Mish

1 year ago

Reply to MPO45

I go to national and state parks constantly. I also do night photography. Uber is not remotely possible. But I agree that for most people who live in a big city and seldom escape, a car makes little sense. Eventually there will be on demand rentals for pre-approved applicants.

My wife just took an express van from Salt Lake City to St George for $60. Can go from St. George to Las Vegas for $60 as well. Those seem like great deals.

vanderlyn

1 year ago

Reply to Mish

on demand rentals were ubiquitous in some locales i have lived. tons of city dwellers in modern cities can easily escape for a weekend drive whenever they desire. i don’t give much care whether folks drive or not, but lots of folks really don’t give a hoot about gas prices. it’s either not even ever in their lives or it’s a rounding error in their yearly costs…………

MPO45

1 year ago

Reply to Mish

When I visit hawaii there is a service called Hui. I use it whenever I’m there, you can rent a car by the hour but if you need a car for the whole week it’s cheaper to rent a car with hertz or someone but then the parking costs are very steep there so it always boils down to doing the math.

I am surprised that someone hasn’t developed a vehicle sharing app for rural areas where you can rent someone’s F150 that sits for the better part of the day. Perhaps its not practical given the large distances between homes but there is such a huge potential. ditto for tractors, dozers, etc.

Most “owned” vehicles likely spend most of the time sitting doing nothing, not even earning cash and that’s dumb.

Jojo

1 year ago

Reply to MPO45

It’s available. Google can be your friend…

link to google.com

StukiMoi

1 year ago

Reply to MPO45

“Most “owned” vehicles likely spend most of the time sitting doing nothing, not even earning cash and that’s dumb.”

As does most beds. Most offices. Most rooms in most houses. Most shirts, shoes and toothbrushes….

What’s dumb is cheering for society being such a dump that people are forced to share toothbrush, shirts, cars, houses and apartments with strangers.

Owning a car used to be pretty much a given in the US. A side note. Like owing a toothbrush.

Technology has moved on from then. Such that, at least left even remotely free to make decisions, people would be more productive. Which means, they would produce more value. Which means their wages/income, in anything resembling a free hence competitive economy, would be bid up.

Such that they could enjoy MORE stuff. Not regress back into sharecropping and sharing toothbrushes. While being told by childbrained, indoctrinated, useless dimwits on nothing but Fed welfare, that sharecropping and sharing toothbrushes is somehow BETTER than being able to afford your own stuff. Because, like, you can, like, have an ,oh-la-la “app” for it!!!!! And, like, Even Louis XIV didn’t have an “app!!!!!” Like!

People share cars, and toothbrushes, and apartments, where they did not before, strictly because America is a more of a third world country now, than it was 50 years ago. Thats the issue. Not lack of second rate “apps.”

Six000mileyear

1 year ago

I’m paying $3.00 in CT because Ned Lamont wants to be re-elected as guv.

vanderlyn

1 year ago

Reply to Six000mileyear

will he clean the windshield and check the oil with a big smile, like goober and gomer.

Ron Cataldi

1 year ago

Reply to Six000mileyear

It’s not even going to be close. Lamont doesn’t need low gas prices to win. I notice the goobers stopped plastering “I did that” Biden stickers on the gas pumps.

California Gasoline Is More Than Double the Price in Texas, What Do You Pay?

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