Why is diesel so expensive in California? $6.08 in CA vs. $4.84 in the rest of the US. California has additional costs:

• Prepaid sales tax of 0.47/gal (but this will be dropping to $0.33/gal effective next month
• 0.46/gal cap and trade cost
• A refinery “monopoly” that generates a $101/barrel profit vs. a Gulf Coast refinery having a $6/barrel profit:
  • Only California refineries can make “clean enough” fuel —so imports from other states are a no-no
  • Refining capacity has declined 12% since 2017 and will go down a further 8% next year.  

These are serious additional costs.

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