Tuesday, April 19, 2005

Gas Prices high, but no conspiracy

Too often Californians' reactions to high energy prices is to expect a conspiracy, but the Daily Bulletin reports that none exists:

What's the truth of the matter? Are we hapless dupes, victims of circumstance or simply paying the price for our own choices?

Any search for answers begins with one indisputable fact. Data compiled daily by AAA shows Californians pay 30 to 40 cents a gallon more for fuel than the average American motorist outside the state.

As of Monday, that translated to an average price of $2.748 for a gallon of self-serve regular unleaded in San Francisco, an average of $2.622 in Los Angeles and San Diego, and an average of $2.647 in the Riverside-San Bernardino area. Those figures compare to a national average of $2.27 a gallon.

Is that too much?

"That's a question that is impossible to answer," said Carol Thorp, spokeswoman for the Automobile Club of Southern California. "The oil companies don't share their books with us and show us their profit margins."

Thorp admits that there are problems - some of them unique to California - that drive up prices. First and foremost is the fact that the gasoline pumped in this state is different than the mixture used anywhere else in the world.

"What's basically true is that year-round, we have the cleanest gasoline on the planet here," said Anita Mangels, a spokeswoman for the Western States Petroleum Association. "That's mandated by law, and the environmental benefits are tremendous.

"It's the equivalent of taking a billion pounds of pollution out of the air every year."

But it's expensive. Twice a year, refineries must shut down and adjust their equipment for the different seasonal blends used.

"When you're essentially brewing your own gas, it causes a couple of difficulties," said Brad Proctor of Ohio-based Gaspricewatch.com, which tracks prices and trends around the country. "First, if demand is high and you run short, you can't buy from anywhere else. Second, you are totally dependent on your own refineries."