by 
tedted
ANSWERS: 5
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Actually there are a couple reasons why gas costs more in some parts of the USA. First, the distance that the gas must travel to the station is a big factor in the high cost of gas. The second and most angering reason for the high cost of gas in some parts of the country is taxes. In addition to the sales tax, there are other taxes that state governments have tacked on to gasoline like enviromental tax, education tax.
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I agree with OrsoChicago. I actually know someone in the business and have had this discussion with him and the reasons cited previously such as distance for distribution and taxes comprise some of the greater costs. I'm still trying out how to be confirmed I've requested emails and only get emails from QA admin referencing answers I've left, so I appologize for not commenting directly
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Some states also have their own gas, liek Texas and Alaska, so gas isn't as expensive in those states.
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G'day Tedted, Thank you for your question. There are a number of reasons. 1) gas may have to travel further to get to some locations far away from a refinery; 2) taxes with some states charging more than others - Federal and state taxes are at least a fifth of the cost and have increased by 50% since 1981; 3) competition between companies and service stations may be greater in some areas than others - it is generally more expensive in rural areas than in big cities with plenty of competition. 4) Some areas have environmental programs which increase prices but hopefully have a beneficial effect on the environment. Overall, gas prices are lowest in the Gulf Coast and highest in the West Coast. Hawaii and Alaska probably have higher prices still. Regards EIA http://www.eia.doe.gov/bookshelf/brochures/gasolinepricesprimer/eia1_2005primerM.html Primer on gas prices http://www.eia.doe.gov/emeu/plugs/plprimer.html NPR http://216.35.221.77/templates/story/story.php?storyId=5365439 National Policy Centre http://www.nationalcenter.org/NPA541GasPrices.html
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In addition to regional transportation cost and tax differences, there is also the problem of different gasoline formulations being used in different regions. For example, in California we use 'oxygenated' gasoline that has approximately 10% ethanol content. Because ethanol is miscible with water, it cannot be sent to California via pipeline, nor can gasoline with ethanol. So, California gasoline is typically refined in-state, then mixed with ethanol that is trucked to the refineries. The Department of Energy has an article that covers this in some detail... http://www.eia.doe.gov/oiaf/servicerpt/fuel/gasoline.html
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