Seriously. Why is gas so expensive? According to AAA, the national average is currently $2.57 per gallon. That's in December with the "winter blend" to optimize engine performance which is less expensive than the summer blend. California has the highest average price of gas at $3.67!!!! I am one of the lucky ones in that I drive a hybrid and I don't drive too far, so I only fill up once a month (I get about 45 miles per gallon). Every time I got to fill up, I spend around $35. A hybrid car is a necessity in California, if you don't want to go broke buying gas. My mother, for example, has a small, somewhat fuel-efficient car and she fills her tank 2-3 times per month, spending about $35-$40 every time. As a result, most people fight to find a decent price for gas, even if it means going out of their way to save $0.05 per gallon. Yesterday, I needed gas and I decided to go to Sam's Club to get gas. I almost cried when I saw the price. It was $2.91. I was so excited, I called my mom and dad and told them to fill up their cars, even though Sam's is about 30 minutes from our house. Over the summer, we're lucky to find gas under $4. The cost of gas is a defining factor in deciding what to do over the summer. According to USA Today, the prices increase in the summer due to planned and unplanned maintenance. In California, every year, without fail, a refinery "catches fire," "has a malfunction," or "explodes." Every. Year. And of course this drives already high gas prices, even higher. States including Colorado, Idaho, Washington, Oregon, California, Utah, Arizona, Alaska, and Hawaii have some of the highest gas prices in the nation, and these are the states that have some of the longest/worst commutes.
But why is gas so expensive? Who controls the prices? Why don't we have a set gas price for the country? Well, in short, it's because of OPEC: Organization of Petroleum Exporting Countries. OPEC controls the price per barrel of crude oil by managing the supply exported from the 14 participating countries. OPEC's goal is to make sure that investor's get a "fair return" on their investment while also supplying consumers with a "steady supply of petroleum." It's even in their mission statement:
" the mission of the Organization of the Petroleum Exporting Countries (OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry."
But what does that have to do with the varying prices from state to state? Gas prices vary from state, county, city, even provider. I've seen intersections with a gas station on each corner, each with a different price. Overall, the variance depends on the taxes in the area. For example, Los Angeles County has a sales tax of 9.50%, San Bernardino 10.5%, and Orange 7.75%. Since Orange County has the lowest sales tax, it has some of the lowest gas prices in Southern California. For each company's gas prices, it depends on their contracts and deals with their suppliers, overhead costs, and other expenses.
Think you can get around this by having an electric vehicle? Nope! Depending on the charging efficiency of the vehicle, you would be spending an average of $6.37 for 50 miles worth of charge, $200-$1000 in equipment, and $800-$1300 in installation fees. Going solar? That might be your best option overall, but has a high initial cost. The cost of solar equipment and installation starts at about $10,000 (not including government rebates and other deductions). The best solution would be to have an efficient electric vehicle and solar power powering your home. Unfortunately, the majority of the population can't afford this set up, hybrid cars are getting more affordable, but still prohibitively expensive.
We need a solution, now.
