What Could Alleviate High Gasoline Prices in This State?

Due to its California Air Resources Board and the regulations imposed by it, Californians pay a premium at the pump to every state that's not named Alaska. One might wonder why California is able to enforce these standards; it's because the state-run organization was already in place before the Clean Air Act was passed. Currently, the Environmental Protection Agency is trying to enact the low sulfur and nitrogen oxide standards throughout the country, but there has been some pushback.

Is there any help on the horizon?
Those who call California home are certainly hoping so. Increased infrastructure to get cheaper Bakken formation and other mid-continent oil to the West Coast is likely to begin appearing in 2014. One of the state's biggest refiners, Tesoro (NYSE: TSO  ) , plans on increasing rail capacity to ports on the coast where it can then ship the cheaper, lighter oil to its refineries throughout the state. Couple this with pipeline expansions in Canada, and some, not total, relief could be in sight. 

The general partner of Kinder Morgan Energy Partners will likely see some payback, as well
It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size – it's the fourth largest energy company in the U.S. -- not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity – as well as the risks to watch out for – in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.


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  • Report this Comment On April 28, 2013, at 11:49 AM, jad9000 wrote:

    The state of California collects a percentage of gasoline prices. They have zero incentive to find any way to reduce prices and every incentive to push them higher. Find one policy they have put into place for the past 30 years that has put downward pressure on gas prices. It's a stealth cash cow that bleeds the taxpayer just like crv "fees", extra "fees" on traffic tickets, DMV "fees". telecom "fees", utility "fees" and on, and on, and on. I wish you luck. The state collects almost 100% more tax/fee revenue PER PERSON than Nevada, Arizona, Idaho, Utah and New Mexico and 50% more than Oregon - and they're broke.

  • Report this Comment On April 28, 2013, at 3:31 PM, mr091468 wrote:

    Those that live in California deserve what they get. There's no fence around it.

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