Where there's smoke, there's fire. If it walks and quacks like a duck, it's a duck. Repeated patterns are a clue, not a coincidence. Pick your favorite witty grandparent-like way to say it, but everyone knows how to connect dots, even if sometimes we don't want to! 🙈 When it comes to gas prices, the same logic applies. There are always exceptions, of course, - to use another witty saying, not every cloud means rain - but let's see how it shakes out if we apply a political lens to gas prices. 🗳️
Here are Five Fast Facts on gas prices through a political lens:
- 👀 Many Factors - There are several things that drive prices up, particularly distance from oil refineries, taxes, and requirements for special blends. On top of the price of the black gold itself, of course.
- 🗺️ Location, Location, Location - Most of America's big refineries are in the Gulf states, which tend to lean red, while most blue states are further away and have to pay more in transport costs. Cali might have an awesome climate, but the wallets weep at the pump out there.
- 🛢️ Refined Tastes - Wisconsin has just one refinery (the Superior Refinery) but it's not particularly large. It helps, but the state's gas prices are still mostly dependent on other Midwest markets. 🙏
- 💸 The Government's Take - State taxes can be such a monster that they make Godzilla green with envy (okay, maybe he was already green, but you get the point)! Alaska is the lowest at $0.09/gal, but Cali blows the roof off at $0.71/gal! Wisconsin is in the middle of the pack at 32.9 cents per gallon compared to the national average of $0.33.
- 🔍 The Fire, Duck, And Clue - The reality is that the list of highest gas prices is dominated by blue states, while the bottom of the list is completely red. Wisconsin (Dem governor, Rep legislature) is #30 on the list, so maybe not prices that make you jump for joy, but at least you're not in the fetal position sucking your thumb.
🔥Bottom line: To be clear, this red/blue connection to gas prices isn't because blue states love high gas prices. But, the things that are typical of blue states are also things that typically drive up gas prices. Correlation is not causation...but correlation can still put a major walloping on your wallet!
How are gas prices where you live?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
