LTE: Oil companies charging our state more than others for gas

[Yo_Mama_Been_Loggin]

If you are like me in wondering why gas is so expensive here in Washington state, the answer is that oil companies are charging customers here more than most other states. Federal taxes on a gallon of gas is 18.4 cents a gallon and state taxes are 50.3 cents a gallon; or a total of 68.7 cents a gallon. At an average of $5.02.6 a gallon in this state per AAA on Aug. 14, that means oil companies are charging and receiving $4.33.9 per gallon from us. Compare that to Mississippi which currently has the lowest average price per gallon at $3.32. Subtracting out Mississippi state taxes at 19.5 cents and federal tax the same at 18.4 cents a gallon, the price oil companies receive and charge at the pump in Mississippi is only $2.94. That is a huge difference of $1.02 that customers here pay oil companies.

Granted a few pennies per gallon go to the gas station owner, and transport; but there is clearly a large disparity in basic gasoline pricing that needs to be addressed. Especially when Chevron, Conoco Phillips, Exxon and Shell all reported record profits in 2022 with sales of $1 trillion according to MoneyWatch. As one consumer I can choose to only buy when I need gas, and not fill up like I usually do; or better yet the next vehicle will not be the traditional gas-powered one. Together, if we only buy the gas we need this week, it can make a difference at the pump!

https://www.heraldnet.com/opinion/oil-companies-charging-our-state-more-than-others-for-gas/

[bucolic_frolic]

1. Distribution costs

are just about unknowable to the general public. Location of refineries, storage capacity, trucking contracts. Not making excuses but just saying, it's a complex set of logistics.

[Yo_Mama_Been_Loggin]

2. True

But there are at least three refineries in our state, two in Anacortes and one in Ferndale.

One would think that would give us a better price.

[Angleae]

4. There's five but their total output if practically trivial compared to national comsumption.

Per wiki, they account for all of 3.4% of national production.

[multigraincracker]

3. Here is retail works,

what the market will bear.

You have to have gas and the best thing you can do is buy it as cheap as you. If you really want to hurt them, never buy anything but gas at a gas station. That’s where the station makes its money.