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Pain at the Pumps in California — Could It Spread East?

Economists say some of the contributing factors to California's recent spike in fuel costs could happen in other areas of the country. Should the government intervene to help bring gas prices down nationwide?

Californians are in shock at the recent spike in fuel prices, with many pumps already registering more than $5 and even $6 a gallon.

While most of us in the rest of the country breathe a sigh of relief that we don’t live there right now, economists are warning it might not be a good idea to get too complacent. According to a story in MSN Money, the scenario that set up California for its current gas woes is one that could happen anywhere in the U.S. Some of the reasons cited are an Aug. 6 fire at Chevron, a power failure in Southern California and a Chevron pipeline that was shut down. According to MSN Money, these are all things that could have a similar impact on the fuel cost anywhere in the U.S. should the same thing happen.

One of the reasons given is that there hasn’t been any new refineries built in the U.S. since 1976, leaving the whole country vulnerable.

In looking at ways to help itself out of the current crisis, California is looking to reduce regulation. The stringent regulations in California do make it more susceptible to sticker shock than the rest of the country.

So the question is, since deregulation is something expected to help bring the price of fuel down in California, wouldn't it work for the rest of the country, too? While prices are nowhere near where they are in California at the moment, fuel costs have remained consistently higher nationwide than they were four years ago.

Would you like to see the government take steps to reduce fuel costs on a national level — not just in California? And if so, how do you think it could be done?

Chris October 09, 2012 at 02:13 PM
$5 a gallon here is just a matter of time. Especially when the genius electorate in this country re-elect Obama. Democrats are to fault for our dependency on terrorists for oil. This country has more resources than anywhere in the world but Obama would rather give borrowed money to his Green Energy buddies that pay back in campaign contributions. These corporations continue to fail while over 20,000,000 Americans no longer have the jobs they once had. 10 years ago, Democrats refused to support more drilling in America claiming it would take 10 years to reap rewards. 10 years later, we are paying three times as much for gas. What a bunch of morons. But the redistribution leeches will continue to vote for these idiots.

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