There’s a lot of bad information floating around on the Internet. For instance, many conservatives blame environmental regulations, but this argument is way off base. Why? Because 75% of the cost of gasoline is in the cost of the crude oil, not in the refining. [1]
At Salon.com, Andrew Leonard spells it all out succinctly: [2]
But questions about refinery capacity, environmental regulations and Balkanization of the overall market shrivel when compared with the real force responsible for the dramatic rise in gas prices over the past eight years. Far and away, the largest factor contributing to the total price of a gallon of gasoline in California (and anywhere else in the United States) is the cost of crude oil.
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