California regulations cause high gas prices
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California’s high gas prices are primarily a result of state policies, regulations, and taxes rather than price gouging, according to a study by Michael Mische of USC’s Marshall School of Business. After analyzing 50 years of gas prices, Mische found no widespread evidence of oil company greed but rather a regulatory environment that increases costs throughout the supply chain.
Mische said:
“The data is overwhelmingly compelling. There is no evidence of price gouging, either by gas station owners or refiners or oil producers in the state — at least widespread."
“It is uniformly acknowledged that California has the most stringent regulatory … environment, for oil and gas companies in the world,” the study reads in part. “Regulatory oversight, irrespective of one’s (political) perspective, is layered into and accumulates throughout the supply chain, ultimately adding to the cost burdens of compliance for oil and gas industry operators, which, in turn, contribute to higher consumer prices at the pump.”
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I suspect California is doing this to encourage people to drive less. California was one of the original homes of the car culture, where hot rodding was popular. It was also one of the homes of pollution from vehicle exhaust. Its current gas prices are around twice what they are in Texas per gallon.
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If your state has expensive energy, it's because of choices made by politicians in those states to virtue signal. President Trump is pushing every day for a return to commonsense policies that will deliver more investment in our country and lower energy prices.
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