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Wouldn't it be nice if Costco starts selling Diesel!! The lowest I'm buying is $2.92 for Diesel at Spirit Fuels and $2.99 for regular at Costco in the Ventura Co. area. and the price of Diesel at the three major brands are in the $3 - $3.67 ranges.
Yikes!!!!! We're being Californicated!! (forgive)
WHY ARE WEST COAST DIESEL FUEL PRICES HIGHER AND MORE VARIABLE THAN OTHERS?
Diesel prices on the West Coast, especially in California, are relatively higher than other regions of the country, partly because of taxes, but mainly because of supply issues. The State of California assesses a combined State and local sales and use tax of 7.25 percent on top of the 24.4 cents per gallon Federal excise tax and an 18.0 cents per gallon State tax. Washington’s tax of 31 cents per gallon is one of the highest in the country. Besides taxes, West Coast retail prices are more variable than others because there are relatively few supply sources: 21 of the 36 refineries located in West Coast States are in California. California refineries need to be running at near full capacity just to meet in-state demand. If more than one refinery in the region experiences operating difficulties at the same time, the diesel supply may become very tight and prices may spike. The West Coast’s substantial distance from Gulf Coast and foreign refineries is such that any unusual increase in demand or reduction in supply results in a large price response in the market before relief supplies can be delivered. The farther away the necessary relief supplies are, the higher and longer the price spike will be.
WHY ARE WEST COAST DIESEL FUEL PRICES HIGHER AND MORE VARIABLE THAN OTHERS?
Diesel prices on the West Coast, especially in California, are relatively higher than other regions of the country, partly because of taxes, but mainly because of supply issues. The State of California assesses a combined State and local sales and use tax of 7.25 percent on top of the 24.4 cents per gallon Federal excise tax and an 18.0 cents per gallon State tax. Washington’s tax of 31 cents per gallon is one of the highest in the country. Besides taxes, West Coast retail prices are more variable than others because there are relatively few supply sources: 21 of the 36 refineries located in West Coast States are in California. California refineries need to be running at near full capacity just to meet in-state demand. If more than one refinery in the region experiences operating difficulties at the same time, the diesel supply may become very tight and prices may spike. The West Coast’s substantial distance from Gulf Coast and foreign refineries is such that any unusual increase in demand or reduction in supply results in a large price response in the market before relief supplies can be delivered. The farther away the necessary relief supplies are, the higher and longer the price spike will be.
I hear-ya and I understand. But I just can't rationalize why one station, and event the same brand station a block away, can have such varying prices.
In 03 when I purchased my PSD I was the minority in my nieghborhood with a Diesel truck, and the price of Diesel was still the lowest of all fuels, which after owning 2 gas truck was the decisive reasoning to purchase a Diesel. Today 1 out of 3 trucks in my nieghborhood are Diesel trucks and Diesel prices are as high or higher than regular gas. Supply and Demand perhaps, but I smell Big Oil Company Greed!!
ozx-3: Last weekend my fillup was at the Valero in Lakeside. I have been using the Thrifty in Santee for a while, but noticed about a 1mpg lower recently so am trying a different brand (Thrifty and Valero are usually within a couple cents of each other). I will go over to the other Valero this weekend (my old stomping ground anyway) and see if it is cheaper. We should get together and compare notes sometime. Drop me an email or PM.
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