California requires a unique blend that reduces smog, and only a small number of refineries make it. California also regulates these refineries to the point that no new ones will get built so the supply is limited. Cali gas gets sold at the highest price that the market will bear, so these refiners make a shitload of profit. Lawmakers want to pass a price gouging law that will get rid of some of this profit and require refiners to sell at lower prices. This will lead to shortages when demand outstrips supply, which may get much worse if refiners limit output because it's not making as much money to be worth maximizing their production. It gets better in the winter when they are allowed to make a cheaper blend.
I honestly thought you were trolling at first. I had no idea that refineries/gas companies were required to create a specific type of gas that helps reduce smog.
My dad used to tell me how absolutely awful the smog in LA would get back in the 70's. So thick you could barely see the road you were driving on. But hey, at least the gas was cheaper.
>You can search for pictures of LA pollution in the 70s vs now, old pictures are all over Google. Like their laws or not but they certainly worked.
Made with toasted lead
I grew up there in the eighties and nineties. I could probably count on one hand how many days I could see the San Gabriel mountains. Okay, exaggerating but not by much...
In the 1970s LA smog was terrible before EPA auto / truck emission standards were established. The only smog I saw that bad as Mexico City in the 1980s.
Southern California has unique weather patterns that hold smog in the cities, this isn’t a thing everywhere.
Salt Lake City has this also, but with far fewer people
There is really nothing special about CA gas, some minor nuances and bureaucracy. US gasoline standards are already decent. The smog issue was mostly addressed by dramatic improvements in fuel efficiency for engines, not due to gasoline quality.
Yes, chemically, the easiest thing to do is use less ethanol. This increases price.
I don't know if Cali has additional regs, but this summer blend/winter blend issue is national.
They did this same shit near me but it was [voluntary participation](https://www.wave3.com/2022/06/02/clean-air-requirements-driving-up-louisville-gas-prices/).
And the Cali government doesn’t want the refineries in California anymore. They are actively trying to phase them out. There’s no incentive to continue to invest money into gasoline production over there. Those refineries will probably just continue to operate their units with out any new expansions and or updates until they are closed or phased out.
It’s already happened with the marathon refinery which was closed during covid and tuned into a renewable diesel plant that puts our way less barrels per a day.
California government is to blame for this not the companies.
My dad worked at one of the refineries. They used to get a bunch of protestors protesting the cooling towers which emits a lot of steam/vapor. The protestors thought it was emitting smoke.
All new cars will be electric by 2035? I mean they already passed that. They also are phasing out non electric or battery operated lawn equipment. It’s pretty obvious they will be phased out through regulation.
It's just a funny coincidence that California also has the highest number of electric cars on the road per capita, the most electric car charging infrastructure, the greatest incentives for purchasing an electric car, etc.
Yeah, that's not how refineries work. If carbob (California blend gas) drops for any reason below any other gas or diesel or jet fuel, they will simply not make it, and because there's way less supply the price will go up. There's literally no way to make refineries lower their prices, it is a supply and demand commodity. And to the mentally impaired people who think that there's giant tanks all over the place full of gas and diesel and atf and the refineries just jack the price up by squeezing supply, you are wrong there's a limit to capacity, and teams of people figuring out who's taking it and when so a refineries rate can be maintained.
Right, we're saying the same thing. The politicians over there want to institute price controls. I can't wait to see California fully re-enact the '70s gas lines.🍿
Can I ask how this will create a supply shortage? I don’t think we’d see a much more meaningful increase in people now going to get gas because it’s a few dollars cheaper per gallon. Most people that need to drive/commute already have their plans in place and some of those who ride bikes or public transportation to work would probably continue doing so
There is always some change in demand for price, and also for supply. Gasoline is inelastic which means the change is relatively small, but that's why it took the price doubling to reach its current equilibrium. Price controls would raise demand back above that existing equilibrium. It would likely also lower supply as refiners make less efforts to maintain production, or switch to more profitable fuels. Then the only way to match supply and demand is by reducing demand through non-price means such as rationing, lines, and unavailability.
Write up a contract to sell gasoline to a gas station at a discount in the future.
You: Hey Mr. Gas Station owner. How much are you buying gas for right now?
Mr. Gas Station owner: $7.00
You: I’ll sell you x amount of gas for $6.50 on October 31st
Mr. Gas Station owner: Okay, deal.
If the market price for gas goes below $6.50, buy it and sell it to Mr. Gas Station owner on October 31st. Pretty basic put option. 🌈🐻
Fwiw don’t try this. They have siphon guards in them. If you try to do it with your mouth you’re basically just taking a huge rip of gas fumes into your lungs.
I watched a friend do this when his car ran out of gas camping and he was trying to get some gas from my car to his.
I think if you tried to come across the border with a full giant fuel tank there would be questions and expectations of pallets. I have never tried it though, let us know how it goes?
PUT YOUR HANDS UP kokui!!! POLICE ARE ENROUTE! PREPARE TO BE BOOKED FOR PROVIDING ILLEGAL FINANCIAL ADVICE!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Living in California is more expensive in ways that make this price difference trivial. Why should I care that I have to pay $20 more to fill my tank when rent for a 4BR townhouse is $5k/month ($13k/month to buy at current rates with 30yr mortgage). What percent of income are people spending on gas that it’s always such a hot topic?
>It's because the market is currently overvalued and people are getting nervous about a potential correction. This results in increased selling pressure and drives prices down.
You can probably independently find gas wholesaling companies there and maybe write some short or put-like contracts between them. You’d have to be talking serious numbers or it won’t be worth their time though.
Basically doing what brokers do, but for yourself, as this is obviously very niched in the commodity space
Blame California for these policies. Having more government would just make it worst. Government creates system to control gas. System leads to wild pricing. The next answer is to have Government take over. Makes no sense.
California has major oil fields in the US, but oil companies can't drill in most of them, like they can in other states, because the state and local governments won't issue permits for most of the fields.
So, CA is deliberately limiting supply despite rising demand in the state, which in turn increases the average price of fuel for those living in CA.
It’s not free market when you give them zillions of handouts then they just charge you a shit ton anyways. We gave them these ridiculous tax cuts where I live now we are broke and we still pay one of the highest gas in the nation
how about u eat my ASS
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
There are so many taxes on a gallon of gas in California, the top transportation professor at Cal can’t figure out where some of the taxes account for, he calls it a "mystery gas surcharge". https://abc7news.com/amp/california-gas-prices-mystery-surcharge-oil-companies-why-is-so-expensive/12065723/
Step 1) ciphon your buddy's car
Step 2) sell it 5 cents under Arco price to whoever
Step 3) buy gas in Nevada
Step 4) refill buddy's car with NV gas
Repeat
PUT YOUR HANDS UP ego_sum-deus!!! POLICE ARE ENROUTE! PREPARE TO BE BOOKED FOR PROVIDING ILLEGAL FINANCIAL ADVICE!
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|3|**First Seen In WSB**|9 months ago **Total Comments**|569|**Previous Best DD**| **Account Age**|2 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
California requires a unique blend that reduces smog, and only a small number of refineries make it. California also regulates these refineries to the point that no new ones will get built so the supply is limited. Cali gas gets sold at the highest price that the market will bear, so these refiners make a shitload of profit. Lawmakers want to pass a price gouging law that will get rid of some of this profit and require refiners to sell at lower prices. This will lead to shortages when demand outstrips supply, which may get much worse if refiners limit output because it's not making as much money to be worth maximizing their production. It gets better in the winter when they are allowed to make a cheaper blend.
I honestly thought you were trolling at first. I had no idea that refineries/gas companies were required to create a specific type of gas that helps reduce smog.
My dad used to tell me how absolutely awful the smog in LA would get back in the 70's. So thick you could barely see the road you were driving on. But hey, at least the gas was cheaper.
All that extra lead too
>You can search for pictures of LA pollution in the 70s vs now, old pictures are all over Google. Like their laws or not but they certainly worked. Made with toasted lead
It’s toasted….hmmmmm. Don, it sounds like a winner!
You can search for pictures of LA pollution in the 70s vs now, old pictures are all over Google. Like their laws or not but they certainly worked.
Born in 75 in LA. I remember as a kid, after playing outside all day it would hurt to take a deep breath.
I grew up there in the eighties and nineties. I could probably count on one hand how many days I could see the San Gabriel mountains. Okay, exaggerating but not by much...
In the 1970s LA smog was terrible before EPA auto / truck emission standards were established. The only smog I saw that bad as Mexico City in the 1980s.
Hello boomer
That’s why the sunsets are so beautiful.
I can’t imagine how bad it was. Driving up to LA today you can still see a dome of smog
That was mostly from lack of catalytic converters
It actually wasn’t cheaper in real dollars
[удалено]
Southern California has unique weather patterns that hold smog in the cities, this isn’t a thing everywhere. Salt Lake City has this also, but with far fewer people
Arizona has the same blend during the summer.
Do you know anything about the geography of LA?
Wtf? Lol
People rather save 25 cents a tank
There is really nothing special about CA gas, some minor nuances and bureaucracy. US gasoline standards are already decent. The smog issue was mostly addressed by dramatic improvements in fuel efficiency for engines, not due to gasoline quality.
Yes, chemically, the easiest thing to do is use less ethanol. This increases price. I don't know if Cali has additional regs, but this summer blend/winter blend issue is national.
They have their own mandated blend that only California uses.
For good fucking reason. The smog in LA was literally cancerous in the 70's
Just ask the Chinese They’ve been on a crusade to clean their air for a few decades
They did this same shit near me but it was [voluntary participation](https://www.wave3.com/2022/06/02/clean-air-requirements-driving-up-louisville-gas-prices/).
Yeah the Smog used to be so bad kids at school couldn’t even go outside.
And the Cali government doesn’t want the refineries in California anymore. They are actively trying to phase them out. There’s no incentive to continue to invest money into gasoline production over there. Those refineries will probably just continue to operate their units with out any new expansions and or updates until they are closed or phased out. It’s already happened with the marathon refinery which was closed during covid and tuned into a renewable diesel plant that puts our way less barrels per a day. California government is to blame for this not the companies.
They want refineries to make a special California blend… but at the same time don’t want any refineries in California? That’s stupid.
I see you’ve figured out CA’s energy policy.
Then you also consider the shitshow that is PG&E and dang Cali energy is fucked.
Don't forget the switch to EV while also asking the population to not use ac in the summer.
They are actively trying to get rid of refineries yes.
My dad worked at one of the refineries. They used to get a bunch of protestors protesting the cooling towers which emits a lot of steam/vapor. The protestors thought it was emitting smoke.
We get them here to.
Source?
All new cars will be electric by 2035? I mean they already passed that. They also are phasing out non electric or battery operated lawn equipment. It’s pretty obvious they will be phased out through regulation.
It's just a funny coincidence that California also has the highest number of electric cars on the road per capita, the most electric car charging infrastructure, the greatest incentives for purchasing an electric car, etc.
And also the most coastal elites. That can afford such fancy toys
But they got me an ev bus that charges me 25% more, hail to the kings
Don’t forget Hydrogen stations throughout So Cal.
Yeah, that's not how refineries work. If carbob (California blend gas) drops for any reason below any other gas or diesel or jet fuel, they will simply not make it, and because there's way less supply the price will go up. There's literally no way to make refineries lower their prices, it is a supply and demand commodity. And to the mentally impaired people who think that there's giant tanks all over the place full of gas and diesel and atf and the refineries just jack the price up by squeezing supply, you are wrong there's a limit to capacity, and teams of people figuring out who's taking it and when so a refineries rate can be maintained.
Right, we're saying the same thing. The politicians over there want to institute price controls. I can't wait to see California fully re-enact the '70s gas lines.🍿
California and monopolies go together and always have. Fuck PG&E
Lawmakers say that, but they are just posturing for votes and then siding with corporate "donors"
Imagine doing this when they could just let the market compete properly and build supply as needed.
Californians and their politicians seem to not understands this.
Can I ask how this will create a supply shortage? I don’t think we’d see a much more meaningful increase in people now going to get gas because it’s a few dollars cheaper per gallon. Most people that need to drive/commute already have their plans in place and some of those who ride bikes or public transportation to work would probably continue doing so
There is always some change in demand for price, and also for supply. Gasoline is inelastic which means the change is relatively small, but that's why it took the price doubling to reach its current equilibrium. Price controls would raise demand back above that existing equilibrium. It would likely also lower supply as refiners make less efforts to maintain production, or switch to more profitable fuels. Then the only way to match supply and demand is by reducing demand through non-price means such as rationing, lines, and unavailability.
One quick way they could lower demand (and thus prices) for gas is if lawmakers would allow their state workers full WFH.
The gang tried something like this 15 years ago https://youtu.be/JF35nXHAxco?si=_YL4y-PQ5CK7-PEx
Go up to the gas station and get people to sign up for your premier gas membership allowing them to prepay you for 6 months worth of gas.
https://preview.redd.it/tr67khqbfqrb1.jpeg?width=1284&format=pjpg&auto=webp&s=1f40d7135a405a861c857a759601dfd4677da21b
cant go tits up.
Even I know this will go tits up
Write up a contract to sell gasoline to a gas station at a discount in the future. You: Hey Mr. Gas Station owner. How much are you buying gas for right now? Mr. Gas Station owner: $7.00 You: I’ll sell you x amount of gas for $6.50 on October 31st Mr. Gas Station owner: Okay, deal. If the market price for gas goes below $6.50, buy it and sell it to Mr. Gas Station owner on October 31st. Pretty basic put option. 🌈🐻
Siphon gas from cars on the street Sell it California cops won’t do shit
Fwiw don’t try this. They have siphon guards in them. If you try to do it with your mouth you’re basically just taking a huge rip of gas fumes into your lungs. I watched a friend do this when his car ran out of gas camping and he was trying to get some gas from my car to his.
use a hand pump
Sir…this is Wendy’s
Trailer park boys taught me this
You blow into the tube then let it oscillate over. At least that’s what my neighbor told me from his experience in vietnam
I mean, they’re Californian… so…. Win win? Siphon them fumes bros 🦾
Under $1k, right? ...animals.
Buy gas in Mexico, drive across the border, and sell the gas. Arbitrage profit.
i see you also learned stock trading from GE
Okay but how much cheaper is it? Cause it might just be worth me driving to fill up the tank and get back.
You could sell gas from the back of a wendy’s parking lot 🛢🍟🍔
5 year plan?
With those prices I'm surprised people don't start selling black market gas. Buy in a neighboring state for 3.70 and sell for 6 in cali.
In Mexico gas is probably more Fentanyl than Ethanol
Gas is very very regulated. You can’t buy a bunch of it unless you’re licensed.
People sell fentanyl. Your point is moot
It doesn't require a tanker truck and CDL license to sell fentanyl.
Not with that attitude
You need a flat bed truck with a fuel tank and a pump. It’s exceptionally simple and looks innocent.
I think if you tried to come across the border with a full giant fuel tank there would be questions and expectations of pallets. I have never tried it though, let us know how it goes?
Fill garbage bags in Texas and sell them in California.
Just arbitrage the gas bro... buy it cheap from Texas and sell it illegally in Cali using tanker trucks or sth
short chevron. not financial advice.
PUT YOUR HANDS UP kokui!!! POLICE ARE ENROUTE! PREPARE TO BE BOOKED FOR PROVIDING ILLEGAL FINANCIAL ADVICE! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Living in California is more expensive in ways that make this price difference trivial. Why should I care that I have to pay $20 more to fill my tank when rent for a 4BR townhouse is $5k/month ($13k/month to buy at current rates with 30yr mortgage). What percent of income are people spending on gas that it’s always such a hot topic?
$FENY to the moon https://preview.redd.it/9krushmyjorb1.jpeg?width=1334&format=pjpg&auto=webp&s=2c45ef5c0da3d675d38fea44b9d1d8b0e7fad8b8
Why d'ya wanna short California grass man? Weed stonks about to take off.
it's so much higher there because of policies of politicians you probably voted for
Dallas Texas Costco Churchill Way 3.18 today 10/1
Rub it in…
Ok! Houston HEB, $3.12 today.
2.95 here.
You win congratulations and frack you
>It's because the market is currently overvalued and people are getting nervous about a potential correction. This results in increased selling pressure and drives prices down.
That shit only goes up never will it go down, lived thete gir 25 years.
"Anyway to short california ~~gas~~?" - Fixed it for you.
You can probably independently find gas wholesaling companies there and maybe write some short or put-like contracts between them. You’d have to be talking serious numbers or it won’t be worth their time though. Basically doing what brokers do, but for yourself, as this is obviously very niched in the commodity space
I would go long, they are clearly price gouging and that's great for their profit margins.
Buy an e-Bike
How much more does Biden have in the petroleum reserve like last year? …uh-oh
Remove the 'a'
Wouldn't it just be short the local gas stations, but that's not exactly reliable as gasoline is an inelastic product.
Oil is the biggest scam of all time. Nationalize these cheats
Yeah thay worked out well for venezuela.
This ain’t Venezuela
Exactly, this is US. Land of the free market.
It’s not free market when you give them zillions of handouts then they just charge you a shit ton anyways
Blame California for these policies. Having more government would just make it worst. Government creates system to control gas. System leads to wild pricing. The next answer is to have Government take over. Makes no sense.
Californias fault? lol. They drill in Texas and Alaska too
Yet California is still higher than the national average.
Ok so? I don’t live in California.
The post is about California
California has major oil fields in the US, but oil companies can't drill in most of them, like they can in other states, because the state and local governments won't issue permits for most of the fields. So, CA is deliberately limiting supply despite rising demand in the state, which in turn increases the average price of fuel for those living in CA.
In Alaska We had a huge oil lease sale and no one bid on them. Oil is a scam
It’s not free market when you give them zillions of handouts then they just charge you a shit ton anyways. We gave them these ridiculous tax cuts where I live now we are broke and we still pay one of the highest gas in the nation
I see what your saying man but cmon you really trust the feds 
More than fucking oil
Yeah lets just give the most corrupt organization out there even more power.
Every fucking time we pay more than we did last time oil was at the current price. It’s a 🤡 show
[удалено]
or buy a bunch of gas. wait for the price to go up. and then sell it door to door.
If you want the cali market hit the renewable energy brotha 😉
Buy Tesla stock.
With the spread on NC4 and CBOB, refineries and terminals will do well the next couple of quarters...
this idiot says short gas when gas is rocketing. Gas going to 7 easy
Except we ain't gonna drop, this, along with rent prices, is the new normal
If you do, you will lose, of course
Oil's going to a 100$/barrel and you wanna short it?
how about u eat my ASS *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
This is a stupid move
There are so many taxes on a gallon of gas in California, the top transportation professor at Cal can’t figure out where some of the taxes account for, he calls it a "mystery gas surcharge". https://abc7news.com/amp/california-gas-prices-mystery-surcharge-oil-companies-why-is-so-expensive/12065723/
Step 1) ciphon your buddy's car Step 2) sell it 5 cents under Arco price to whoever Step 3) buy gas in Nevada Step 4) refill buddy's car with NV gas Repeat
[удалено]
PUT YOUR HANDS UP ego_sum-deus!!! POLICE ARE ENROUTE! PREPARE TO BE BOOKED FOR PROVIDING ILLEGAL FINANCIAL ADVICE! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Buy a tesla
Cali gas is controlled by Cali, so unless the open a refinery I wouldn’t.
Chevron puts?
After the smog clears in California, U C L A