ZzzKing
Contributor
Oil is discovered, drilled, refined and sold here. They charge us more for the gas simply because they know they can get away with it (lack of competition plays a big role). It's an outrage. Often times Anchorage has the highest gas price in the nation (as measured by some survey of 100 cities or something) - and is $1/more above the national average. Last I looked, we were 40 cents above the national average - and again - it's not due to tax either.
In Texas, we pay significantly more for natural gas than they do in the northeast, where we pipe it to. When it crosses state lines, it is subject to interstate commerce regulation by the Feds. As long as it stays in state, they can charge whatever the market will bear.