Q&A on gas prices

-- joseph mann
South Florida Sun-Sentinel

March 20, 2007

Q .Why are gasoline prices higher in Florida than in other states?

A. Thirty-six states currently sell regular gas cheaper than in Florida, while prices are higher in 13 states, according to the AAA's Daily Fuel Gauge Report. The price for regular is the same in the District of Columbia.

The differences depend on the distance between a particular market and an oil refinery, port or pipeline; the level of local competition among gas suppliers and oil company pricing policies.

For example, Florida has no oil refineries and is not connected to an interstate pipeline that carries gasoline. In South Florida, gas is delivered to Port Everglades by tankers coming from refineries on the Gulf of Mexico or from other countries. This raises transportation costs. In Georgia, gas is cheaper than in Florida partly because two major oil product pipelines cut through the state. Also, its gas taxes are lower: 39.7 cents a gallon compared to 50.3 cents a gallon in Florida.
{A list of all gasoline tax levels by State is at this Weblink}

http://www.energy.ca.gov/gasoline/st...tate_2002.html

In contrast, gas in California is always higher than ours since oil companies there are required to make cleaner and more costly fuels to meet strict state air quality standards.

If you have a question about gasoline prices or the oil industry, send an e-mail to businessnews@sun-sentinel.com. Please put "gas prices" in the subject line and include a daytime telephone number.

For tips on conservation and finding low-priced gas, go to Sun-Sentinel.com/helpteam