A Thought on Gasoline Production

I had one. Take a breath.

California citizens pay a far higher price for a gallon of gasoline than even the average nation-wide: $5.79 against $4.29. Most of that difference comes from California’s State-unique regulations imposing, for instance, a low-carbon fuel standard and cap-and-trade taxes.

Separate from President Joe Biden’s (D) war on fossil fuel-sourced energy inflating the price of energy generally and gasoline in particular, that California price-inflating set of requirements also inflates the cost of gasoline nationally, since refiners are reluctant to produce separate kinds of gasoline for separate markets. Which brings me to my thought.

Refiners should produce a single type of gasoline related to carbon content, cap-and-trade taxes, and other froo-froo, based on the lower levels of regulatory interference in the rest of the nation, and sell that gasoline virtually nation-wide. Then they should offer to sell that single type to California buyers together with license(s) so those buyers can to modify the refiners’ product as they wish to bring that gasoline to within California desires.

In this way, drivers in the other 49 States would get a lower cost fuel from the refiners’ not having to impose some of that California cost on the rest of us, and the refiners would be able to recoup in the form of license fees most, if not all, of the putative costs of not selling directly into the California driver market.

Leave a Reply

Your email address will not be published. Required fields are marked *