Why Do Are Diesel Prices Higher In California?

Diesel prices on the West Coast, and most noticably in California (CA), are comparatively higher than other areas of the country, partly because of higher taxes, but primarily because of availability problems. The State of California tacks on a combined State and local excise tax of seven and a quarter percent in addition to the 24.4 cents/gallon Federal excise tax and an eighteen cents/gallon State tax. Also, the state of Washington’s tax of thirty four cents per gallon is one of the steepest in the country. In addition to taxes, West Coast retail prices are more volatile than others because the supply sources are few and far between: If operating problems pop up at two or more refineries in the region, the diesel supply may become very restricted and prices may rise sharply. The West Coast’s lack of proximity to Gulf Coast and foreign refineries are so delicate that any substantial increase in demand or reduction in supply results in a large price response in the market before relief supplies can be delivered. The farther away the necessary relief supplies are, the higher and longer the price spike will be. While no individual can exercise great influence over the price of diesel fuel, any individual can become cause and reduce their fuel consumption. In case you are not familiar, it’s true, safely splitting Hydrogen from water to produce a source of fuel is already here as a workable alternative. Furthermore, it is not even a new technology, really; its just recently been designed better so that we can use it.

What this does is make bite sized particles out of the particles that the engine burns as fuel. Therefore the system gets to use a lot more of it. By doing this you can minimumly expect to reduce your fuel consumption by 30-50% or even more. Those particles must have been pretty darn big in some systems before. But with W4G they are made consumable so you can reduce your fuel consumption.

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