OPINION: Whether you are paying $3.69 in Topeka — among the cheapest prices in the nation — or $5.59 on Twin Peaks, among the highest, you are still underpaying at the pump.
A gas station on Bryant Street. Prices in The City are creeping toward $6 per gallon.
The price consumers pay at the pump reflects the costs to explore, extract, refine, transport and distribute fuel, with extras added along the way to enrich the petroleum industry and comply with federal and state taxes. Among the reasons Californians pay so much is that the state’s 51 cent per gallon tax is the highest in the nation.
Cigarettes, for example, might be just a few dollars a pack if smokers paid only what it costs to grow, manufacture and distribute tobacco, and left society the tab to cover the damage caused by second-hand smoke and the billions of dollars of uncompensated health care. So what is the true cost of a gallon of gas? Estimates vary widely, depending on whether calculations include the price of global warming, military expenses to protect and obtain oil, or the costs of traffic congestion and accidents.
If you were asked to contribute an extra $5 per gallon, commuting in the Dodge Ram jumps to $230. The Prius would cost you $47. Suddenly the 10-speed Schwinn looks more attractive.
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