Drivers in car-crazed California paid more than 10% more for their gasoline at the start of the year. They just didn’t realize it.
As expected, California’s introduction of the emissions cap-and-trade program for transportation fuel suppliers boosted Los Angeles regular gasoline rack prices nearly 17 cents in the first two days of 2015 to $1.5885/gal. The rack is the wholesale level where gasoline and diesel is moved onto those often-shiny tanker trucks that hold roughly 9,000 gallons.
What barely changed right away was the price up and down the supply chain.