California, Four Five Billion Dollars And Million Dollars discussed on KROQ Programming


Of business and former chair of the California petroleum market advisory committee should we be suspicious about why for example I paid I think it was four dollars and maybe fifty six cents a gallon for gas just this weekend well we should definitely be frustrated I think we should also be at least the Fisher our committee when I was share of it did an investigation but really didn't have the resources to figure out whether this is just supply and demand or whether it's more than that and some of the producers are actually holding supplies off the market coincidentally this spike is happening right as the California energy commission is promising to release a new report on this issue so sometime in the next couple weeks they have promised to release another report on the higher gasoline prices and it'll be interesting to see if they found out anymore okay so we wait for that but it does often seem like there are refineries that have their schedule maintenance or without a problem were down for repairs but it's not just one it's two at a time awards a few of them editado em and it always happens right before we're gonna switch the blends of gas anyways and it feels like they did in the squeeze put on yeah well it's hard to know it doesn't always happen when in multiples but it does occasionally and that's of course when we noticed that but we do have a problem and that is that about half of California's gasoline is produced by just you company and that puts them in a very strong position the book the price by just taking a little bit of supply on the market whether they are actually doing that we haven't had the resources or the real focus to dig in and find out about the sorts of spike's always because big political uproar and it lasts for a few weeks and then it seems to go away and the politicians expressed outrage for a few weeks and then they move on to other issues so let me ask this question in a in a kind of different way why should we trust the gas companies we shouldn't trust the gas companies we shouldn't trust companies generally always price fairly competition is what makes the price fairly not the goodness of their heart and the issue is is this a sufficiently competitive market that is do that do we have enough different producers back and puts a client to the market when we need it and certainly when you have two producers or who control half the capacity for production in the state that that should be a concern now that's only the first step in finding out whether they're actually doing something to Jack up prices but at least it raises the suspicion and that's why our committee said that the state needed to put a lot more resources into finding out this out you know even before this bike we were paying thirty or forty cents more than you would expect disputes or higher taxes the environmental fees and even that amounts to four five billion dollars a year for California when you throw the spikes and it adds a couple more billing you were there for that hidden fees I think we may be talks to you at one point about it but someone did a list of all the different prices and everything that gets tacked on all the way from you know pulled from the ground into my gas tank and there was a little see that somewhere in the process god put on everybody's bills and then even the state was like yeah we're not sure what this is that's right that's right what I call the mystery gasoline surcharge and I've done a lot of work on it and without a much bigger investigative we're not going to find out too so don't know yeah so we still have no idea what that money goes for or why it's not you know where the money goes the money goes the the sellers we don't know whether that's covering a legitimate costs as some of them that they have us assert it or whether it's just big profits but given the amount of money that is on the line it seems like it would be worth investing a few million dollars to find out where all those billions of dollars are going seven boards in directs the energy institute so UC Berkeley Haas school of business former tear California petroleum market advisory.

Coming up next