Why does gas cost more in the San Francisco Bay Area then anywhere else in the US?

Question

Every time I turn on the news, they report that we pay more in the San Francisco Bay Area for gas then anywhere else in the country. I don't get it! Why is gas so much more expensive here?

Answer 1

i've heard it's because of the tax on gas which is because in CA they put a chemical in the gasoline so it's less devastating to the envt.

Answer 2

The consumer price index in s.f. is the highest among the states thats why gases are so expensive. Not only gases, the living standards is higher now cause of recession and poor economic conditions.

Answer 3

There are a number of factors that go into the high price of Bay area fuels.  First, California has some of the strictes regulations in the US on gasoline formulations.  This results in small volume "flavors" of gasoline.  Smaller volume means higher unit cost.  Where we can refine hundreds of thousands of barrels for a large market, in CA, we have to refine 20 or 30 thousand barrel batches.  Switching refineries for diffrent flavors costs money, making the gasoline more expensive.

Also, not only is your cost of living higher, but the refinery and terminals have a higher cost of business.  The truck company who transports the fuel has higher labor costs, fuel costs, insurance costs. Taxes add to the burden and I'm sorry to say, but marketing decisions can push up the price as well.  

These all combine to push Bay area fuels to the top of the price charts.

Answer 4

Yeah its crazy especially since there are the refineries in Richmond and Martinez right there. But also California has the higher taxes on fuel than anywhere else

Answer 5

supply and demand.