Part 7/11:
Several structural issues exacerbate the supply problem:
Specialized fuel formulations that cannot be exported or imported easily.
Limited infrastructure for importing gasoline from other states or countries.
Pipeline constraints and a declining number of local refineries.
Geographic isolation, with mountain ranges and distances complicating transportation logistics.
These factors mean that fluctuations in supply or demand can cause significant price swings, sometimes lasting for months or years. The situation is compounded by California’s trend toward banning new gas-powered vehicles past 2035, which indicates a future with even less reliance on domestic refining.