Gas Prices in California

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Submitted By jhicks04
Words 2919
Pages 12
Why Gas Prices are higher in California than in other Parts of US
English 123
James L Hicks
Embry Riddle Aeronautical University

The rising gasoline and oil prices have become a global concern since petroleum has many uses around the world and yet its prices have continued rising for the last sixty years. This paper sought to find out why gas prices are higher in California than in other parts of America. The literature reviewed showed that West gasoline market dominated by California is defined by tight balance between supply and demand. Other factors found to be contributing the escalating gas price in California include isolation of the state from other refining centers, market conditions including international demand, Wall Street speculation, poor policies leading to uncontrolled oil cartels, decline of oil production during technical failure, political interferences, and increasing prices of crude oil due to demand forces. Despite there being no quick solution to the challenge, temporary measures such as efficient use of the available resource while looking for alternative cheaper source of energy could alleviate the challenge.

Why Gas Prices are Higher in California than in Other Parts of US The Rising gasoline and oil prices have today become a world concern (Garrington, 2012). More concerns are raised considering that petroleum is an important product whose price continues escalating for the last sixty years (Murray, 2012). Currently, the highest percentage of gasoline cost (75-80%) in most parts of the world is determined by petroleum cost (Murray, 2012). In America, the other percentage (20-25%) is largely influenced by American’s government policy and other factors (Murray, 2012). The increasing prices may also be due to reduced growth in world’s oil and gas supply and artificially low…...

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