FROM THE DRIVER’S SEAT

CALIFORNIA’S FUEL PRICES WILL INCREASE

stay-in-touchAn effort in the California legislature to postpone the inclusion of vehicle fuels in the Cap-and-Trade program was killed by Senate President Pro Tem Darryl Steinberg (D). Therefore, the program will go forward on January 1, 2015, as will our fuel prices.

Fuel refineries in the state (remember California has a unique blend of fuel that is only refined in California) will have to purchase carbon credits from the Cap-and-Trade market to offset their emissions. In turn, they will pass along this increased cost to the distributors, who will pass along to the retailers, who will pass along to the consumer.

It is estimated the initial increase will be $0.13-$0.18 per gallon. The cost in the short and long term will depend upon the cost of carbon credits.

CAP & TRADE’S FUEL TAX

Fuel Island 009California’s Cap and Trade program, which is the buying of selling of pollution credits, will increase the price of gas and diesel in the state by $0.15/gallon starting next year. Those who created the plan see the increase as “unintended” while those of us who understand how business works saw it coming a mile away.

Read Richard Coyle’s, President Devine Intermodal, op’ed in the Sacramento Bee. Click here.

Oh, and did we mention, 25% of all Cap and Trade monies collected will go to build high-speed rail. Forget about our dilapidated roads and bridges…who needs goods movement anyway?