Dianne Feinstein wouldn't understand the concept of "supply and demand" if it bit her on her rather large posterior. Simply put, the State of California has such stringent environmental laws in place, that it disallows out of state inport of fuel because other states don't use the same mixture.LOS ANGELES (AP) - Sen. Dianne Feinstein has called for a federal investigation into gas prices in California because she doesn't think they are related to supply and demand.
Hence, California cannot produce the needed fuel stocks to support the necessity in the state. The Supply is low. The demand is high. Prices reflect the demand. Dianne Feinstein looks like an idiot while she sends nastygrams to the Federal Trade Commission and proposes another beauracratic committee ( permanent gas and oil oversight market committee) to address California's stupidity while being careful to blame "BIG OIL" for that same idiocy.
I can't help noticing the same issue of interstate competition being nulified by California's individuality just like it occurs in health insurance. Were the states allowed to compete, prices would lower in both industries. Essentially, what California consciously did is remove herself from capitalism. They are no longer emersed in a national competition on fuel prices. They are intrastate, which shrinks the market and raises the prices due to non-competition. Incidentally, this is the basis for the Occupy Movement...detroying capitalism. Here we have a microcosm of what they would call success...$5+ gasoline.