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Are Bethel and Nome, AK connected to the rest of the world by road? If not transportation might be a real, instead of falsly created, factor in that price.
Residents of Bethel, Alaska, are currently paying $6.34 per gallon for regular unleaded gasoline. Nome is looking at $9.00 per gallon for regular unleaded gasoline.
Lower-48ers have no basis on which to complain about gasoline prices.
you people seem to get screwed over with prices on everything honestly.
The process is called "Zip Code Pricing" and is based on a complex anaylsis of demographics, location, income statistics, market regidity and a few other things. The point is to charge the highest price that will maximize profit without cutting sales. The major oil companies figured out this collusion decades ago. Pricing is not an acident it is a caculation. They never compete on price. Never.
You prefer bailouts to profits?
Price to high in your zip code, drive a little farther down the road.
Residents of Bethel, Alaska, are currently paying $6.34 per gallon for regular unleaded gasoline. Nome is looking at $9.00 per gallon for regular unleaded gasoline.
How many refineries are in Alaska?
I don't know the answer. I haven't offhand heard of any, but I haven't been looking.
Are there none? If so, then does that mean that any gasoline they have there, has to come from crude that is shipped (possibly from Alaska itself) to a refinery far from Alaska, refined to gasoline, and then shipped (again) to Alaska?
Perhaps $6.34/gal is not unreasonable, and is simply a reflection of the cost of shipping and refining?
I don't know the answer. I haven't offhand heard of any, but I haven't been looking.
Are there none? If so, then does that mean that any gasoline they have there, has to come from crude that is shipped (possibly from Alaska itself) to a refinery far from Alaska, refined to gasoline, and then shipped (again) to Alaska?
Perhaps $6.34/gal is not unreasonable, and is simply a reflection of the cost of shipping and refining?
Anybody know the answer?
We have three refineries in Alaska, but the EPA just shut down the North Pole (Flint Hills Refinery) refinery. So now we have to import gasoline from the lower-48.
We have lots of oil, just not enough refining capability. Alaska only keeps 2% of the oil we produce. Now we ship the oil to the lower-48, let them refine it into gasoline, then ship the gasoline back up to Alaska.
Residents of Bethel, Alaska, are currently paying $6.34 per gallon for regular unleaded gasoline. Nome is looking at $9.00 per gallon for regular unleaded gasoline.
Lower-48ers have no basis on which to complain about gasoline prices.
Have you looked at the price of a gallon in Hawaii?
How about Saudi Arabia?
Saud gas is subsidized. It's like a German college education.
Hawaii has the highest gas taxes in the country and of course the capital investment (land cost) is staggering in Hawaii and thus requires higher product margins.
Same reason why if you drive from some small town in Illinois 45 minutes into one of the northern suburbs you will see gas prices just a couple dimes....solely due to operational costs and capital investment requirements.
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