Y'know, Some People Are Funny...

I just got word this morning that an old high-school friend of mine is moving back to Southern California this fall. From Mississippi.

Okay, so her husband got a new job out here. That's fine. But just a couple of weeks ago, when gas in L.A. was knocking on the $4.00/gallon mark (and it was in some places), she expressed her incredulousness of how expensive gas was in her town (around $3.13).

Well, at that time, the AVERAGE price of SoCal gas was about $3.42/gallon. Now, it's about $3.19, with some places venturing back under the $3 mark (Thank God!). My friend, whose name is Winnifred, swore she would never come back to L.A.

Well, guess what? Hubby got a new job. Guess you're coming back, girl! :)

Now, for a simple lesson in petroleum economics:

Gas is more expensive here than anywhere else in the country. As of this writing, California, then the whole West Coast, lead with a 1-2 punch of an average of $3.236 and $3.188, respectively. The Rockies come next at $3.181, and the Gulf Coast rings in at the cheapest, with $2.903.

Why? Distance from refineries, for one. It costs a lot of money to ship fuel from the refineries, many of which are where? That's right, places like Houston, New Orleans, and Mobile, and other Gulf Coast towns. But the real difference is that California (and Colorado) have very aggressive environmental policies when it comes to fuel emissions. As a result, gas in these (and other) areas is refined a different and more costly way. And guess who has to pay for this relatively clean gas? We do. Though it's a couple of years old, this article on the Department of Energy Website explains it very well.

(Gee, I was talking about Winnie coming back, and I ended up explaining the price of gas! Boy, do I digress, or not!).

With that in mind, Winnie, you are welcome to come home! Just don't expect to see gas prices come down in your honor (unless, of course, your husband owns Shell Oil). :)