Pinnacle Petroleum, Inc.’s Post

Governor Newsom of California seems to have it out for the oil companies. He plans on imposing a tax on refineries’ gross margins, which is the difference between wholesale gasoline and crude prices. Keep in mind that refineries do operate on a rather thin margin and I believe this new tax will ultimately be passed on to consumers at the pump. It’s also important to note there is a difference between gross margin and operating margin. Gross margin does not account for operating costs like employee pay. According to the commission’s data, refiners lost between 10 and 38 cents on each gallon they produced from October 2023 through February 2024, while their gross margins ranged from 56 to 79 cents a gallon. In December, California refineries lost 31 cents a gallon while the state imposed $1.15 a gallon in taxes and regulatory fees. This will also come around the same time that the California Air Resources Board prepares to tighten its low carbon fuel standard and greenhouse emission cap. These regulations currently add around $0.54 to the price of a gallon of gasoline. New rules could increase the price of gas by an estimated $0.88 per gallon in 2026 and rise to over a dollar by 2031. California refineries also supply about 90% of Nevada’s gasoline and half of Arizona’s gasoline, so they will also see price increases. Keep in mind they’re not going to be reducing any taxes and while the cost of true gasoline may stabilize or come down in the future people in California could be paying $6-$7 a gallon for gas while the rest of country is paying roughly half of that. And who does this hurt the most? The lower and middle-class. Maybe we’ll need to launch another task force in a few years to figure out why our gas prices are so high. #governornewsom #californiagovernor #oil #oilcompanies #taxes #gas #gasoline #gasprices #oilrigs #economy #useconomy #californiaeconomy #government #californiagovernment

Governor Newsom of California seems to have it out for the oil companies. He plans on imposing a tax on refineries’ gross margins, which is the difference between wholesale gasoline and crude prices. Keep in mind that refineries do operate on a rather thin margin and I believe this new tax will ultimately be passed on to consumers at the pump. It’s also important to note there is a difference between gross margin and operating margin. Gross margin does not account for operating costs like employee pay. According to the commission’s data, refiners lost between 10 and 38 cents on each gallon they produced from October 2023 through February 2024, while their gross margins ranged from 56 to 79 cents a gallon. In December, California refineries lost 31 cents a gallon while the state imposed $1.15 a gallon in taxes and regulatory fees. This will also come around the same time that the California Air Resources Board prepares to tighten its low carbon fuel standard and greenhouse emission cap. These regulations currently add around $0.54 to the price of a gallon of gasoline. New rules could increase the price of gas by an estimated $0.88 per gallon in 2026 and rise to over a dollar by 2031. California refineries also supply about 90% of Nevada’s gasoline and half of Arizona’s gasoline, so they will also see price increases. Keep in mind they’re not going to be reducing any taxes and while the cost of true gasoline may stabilize or come down in the future people in California could be paying $6-$7 a gallon for gas while the rest of country is paying roughly half of that. And who does this hurt the most? The lower and middle-class. Maybe we’ll need to launch another task force in a few years to figure out why our gas prices are so high. #governornewsom #californiagovernor #oil #oilcompanies #taxes #gas #gasoline #gasprices #oilrigs #economy #useconomy #californiaeconomy #government #californiagovernment

Governor Newsom of California seems to have it out for the oil companies. He plans on imposing a tax on refineries’ gross margins, which is the difference between wholesale gasoline and crude prices. Keep in mind that refineries do operate on a rather thin margin and I believe this new tax will ultimately be passed on to consumers at the pump. It’s also important to note there is a difference between gross margin and operating margin. Gross margin does not account for operating costs like employee pay. According to the commission’s data, refiners lost between 10 and 38 cents on each gallon they produced from October 2023 through February 2024, while their gross margins ranged from 56 to 79 cents a gallon. In December, California refineries lost 31 cents a gallon while the state imposed $1.15 a gallon in taxes and regulatory fees. This will also come around the same time that the California Air Resources Board prepares to tighten its low carbon fuel standard and greenhouse emission cap. These regulations currently add around $0.54 to the price of a gallon of gasoline. New rules could increase the price of gas by an estimated $0.88 per gallon in 2026 and rise to over a dollar by 2031. California refineries also supply about 90% of Nevada’s gasoline and half of Arizona’s gasoline, so they will also see price increases. Keep in mind they’re not going to be reducing any taxes and while the cost of true gasoline may stabilize or come down in the future people in California could be paying $6-$7 a gallon for gas while the rest of country is paying roughly half of that. And who does this hurt the most? The lower and middle-class. Maybe we’ll need to launch another task force in a few years to figure out why our gas prices are so high. #governornewsom #californiagovernor #oil #oilcompanies #taxes #gas #gasoline #gasprices #oilrigs #economy #useconomy #californiaeconomy #government #californiagovernment

According to a report by Statista, gasoline prices in the United States vary significantly. Factors such as state-specific transportation and distribution costs can lead to higher prices in states like Alaska and Hawaii. Additionally, state taxes also play a significant role in determining gasoline prices, as seen in high-tax states like California.

According to a report by Statista, gasoline prices in the United States vary significantly. Factors such as state-specific transportation and distribution costs can lead to higher prices in states like Alaska and Hawaii. Additionally, state taxes also play a significant role in determining gasoline prices, as seen in high-tax states like California.

California Allows Early Transition to Winter Blend Gasoline to Address Fuel Supply Issues The California Air Resources Board (CARB) issued a Regulatory Advisory, allowing the early adoption of winter-blend gasoline in response to fuel supply challenges and soaring prices in the state. Winter-blend gasoline is cheaper to produce and more plentiful than summer-blend gasoline, so switching early could save consumers at the pump. Read More 🔗 https://brnw.ch/21wDspJ

What determines the price of a gallon of Diesel? This is easily my favorite graph the EIA puts out because it shows why the fuel surcharge can be based on the national average and still be relatively fair. Most states get their fuel from competing refiners, so the bottom half of the pump in the picture (69% of the total) is similar no matter where you buy fuel. The rest of the price inputs - Distribution, Marketing, and Taxes - all vary greatly by state but tend to be relatively constant. For instance, DE charges a diesel tax of $0.22 while neighboring PA charges a whopping $0.785. But, regardless of tax, when the price of Diesel from the refinery goes up by $0.05, both prices tend to go up by $0.05. That means the national price tends to also go up by $0.05, which is captured by the Fuel Surcharge. So, whether you quoted your rate based on cheap DE prices or expensive PA prices, you're covered because they both moved in line with the national average. Your only trouble comes if something is affecting the prices in a specific state/region or you're forced to fuel up in a state other than what you based your rate on. In general, though, neighboring state-to-state differences aren't as dramatic as PA to DE. Fuel and its inputs are complicated - the above is a simplification of a dynamic and important factor in setting rates. I am always happy to talk about fuel or the FSC if you want to talk more - this is what we do at ReliaFuel.

Why Are California Fuel Prices So High? California businesses and consumers pay the highest fuel prices in the continental United States. Several factors contribute to these higher fuel prices, including high demand, limited supply, various taxes and fees, and strict regulatory standards. Let's look at each factor involved in the price of California's fuel. Click on the link below to read all about it! bit.ly/ca-fuel-prices

Filling Your Tank and Filling Your Pockets: The Story of Diesel Prices Diesel prices are set to rise in early June, according to research house CGS International. This move aims to curb smuggling and lessen the burden of costly subsidies on the government. But will it hurt your wallet? Experts say the impact is likely minimal. Diesel makes up a small portion of inflation calculations, and producers may not feel a significant pinch thanks to the fleet card system. This news comes after swirling rumors about subsidy cuts. While officials haven't confirmed a timeline, Prime Minister Anwar Ibrahim is clear: subsidies need to be smarter, targeted to those who need them most. So, what does this mean for you? A slight increase at the pump, potentially. But a government working towards a more sustainable financial future. The story's still unfolding, but one thing's for sure: staying informed keeps you in the driver's seat.

Gas prices fluctuate from state to state due to factors such as local taxes, environmental regulations, reliance on local production or imports, and the proximity of refineries. In this infographic, a usage of data from the American Automobile Association (AAA) to illustrate the cost of fueling a vehicle in each U.S. state.