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Article #5306Re: K-Mart and Coffee
From: Reggie Grigsby
Date: Sat, 10 Apr 1999 00:00
Date: Sat, 10 Apr 1999 00:00
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5284 bytes
Claude D. Bilbo wrote in message <370c272f.93438739@news.bham.mindspring.com>... > ><SNIP> >>justification for this. San Diegans traditionally have paid more than most >>places in the state: the reason given is the costs associated with >>transporting fuel to us. ><SNIP> > >Well, just how true is that? Do you not have any oil refineries near San >Diego? If so, then that's the price you have to pay for not having it in >your back yard. The second largest refinery, along with several others, are located a mere sixty seven miles from the San Diego pertroleum tank farm (the city of Wilmington and surrounding communities, just north of Long Beach, and further south of Los Angeles). With the creation of new freeways, the drive is even less than that. A number of oil companies have their drivers make two runs to San Diego, commencing in the early morning hours. More importantly, these same refineries supply 99% of Southern California, a number of cities even farther away than San Diego. I find it pretty interesting that some cities in the Los Angeles area are even farther from the refineries than San Diego, yet they are not hit for the so called "transportation fee." Gas in San Diego is considerably higher than in Los Angeles, and the prices here are either the highest or just second behind the Bay Area. Also, it would be interesting to know what percentage of >the gas price is tax. Add to that the cost of complying with California >regulations. The federal gas tax and the state gas tax are the same for California and Alabama; 18.4 cents cents federal, and 18 cents, state. The gas additives required by California law for "cleaner burning fuel" amount to only 5 to 15 cents, that price according to the major oil companies. California does have a state sales tax of 7.75%, and most counties toss in another 2.5% or more; nonetheless, that does not add up to the discrepancy in the price of a gallon of gas in B'ham and San Diego, or else where. I read where the price in some places in B'ham is less than a dollar, about 1.05. Average for "branded" regular unleaded, 1.49, this week in San Diego. California is infamous for raising its own regulations above >and beyond those of the federal government. Is the attendant at the gas >station required to provide you with a Material Data Safety Sheet? Other issues affecting gas prices in San Diego: a number of gas stations are owned by gas companies, decreasing competition and controlling the pricing. The SD County Board of Supervisors attempted to pass an ordinance prohibiting future stations from being owned by gas companies, however, it failed. All of the gas companies establish zone prices to maximize their market potential and exert control over the prices set by the franchisee. Regardless of what competitors may be doing, dealers either charge the prices set by the company, or face penalties on their income or quantities. I worked as a market analyst for an oil company for a year. In setting prices, they took into account things like the public transportation system and its efficiency and ridership - pretty low in San Diego; the tourism 'factor" of a given area; per capita income; and the attitude of the local governing body. In San Diego, we saw a brief respite from high prices after government bodies conducted hearings on gas prices. Since most local authorities cannot regulate the oil companies, company execs did not show up in some instances; in other instances, they could not justify or explain their pricing. Nope, the attendant doesn't give you a Materials Data Safety Sheet. If you want one, you have to contact the oil company and have them mail you one, or contact the state Energy Commission. There are a couple of web sites that speak to the issue of San Diego/LA gas prices: http://www.ucan.org/ucan/gas/paper/ this report talked about the price difference as early as last year. http://dailynews.yahoo.com/headlines/ap/washington/story.html?s=v/ap/1999040 1/pl/gas_prices_1.html This one talks about gas prices by region and provides a "weighted average price." To ABG: I apologize for taking up so much bandwidth, and I don't mean to start the endless posting of websites.
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 107518,fc50f4ca06224dcc X-Google-Attributes: gid107518,public X-Google-Thread: fe958,fc50f4ca06224dcc X-Google-Attributes: gidfe958,public From: "Reggie Grigsby" <dezreg@nospamhome.com> Subject: Re: K-Mart and Coffee Date: 1999/04/10 Message-ID: <xrzP2.7550$Qc5.4483@news.rdc1.sdca.home.com> X-Deja-AN: 464672275 References: <370A0142.A6CD8FD0@bellsouth.net> <01be8068$71780e00$2135c0d8@eric> <370AA001.AC1C4E0A@gsaix2.cc.GaSou.edu> <01be8135$fcb4a6e0$0535c0d8@eric> <370dcf4f.20815811@news.mindspring.com> <sTSO2.5557$Qc5.3633@news.rdc1.sdca.home.com> <370c272f.93438739@news.bham.mindspring.com> X-MimeOLE: Produced By Microsoft MimeOLE V4.72.3155.0 X-Complaints-To: abuse@home.net X-Trace: news.rdc1.sdca.home.com 923714397 24.0.136.201 (Fri, 09 Apr 1999 20:19:57 PDT) Organization: @Home Network NNTP-Posting-Date: Fri, 09 Apr 1999 20:19:57 PDT Newsgroups: misc.consumers,alabama.birmingham.general