Gasoline prices have fallen in all states except California, where they continue to rise. State authorities continue to blame oil companies, atmospheric or external factors, ignoring the fact that the state has high taxes and environmental policies that mean prices are the highest in the country.
Analysts expect prices to continue rising in the Golden State. Patrick De Haan, head of petroleum analysis at GasBuddy, predicted increases ranging from 35 to 50 cents per gallon in Northern California in the coming days. Nationally, the average price per gallon of gasoline stood at $3.71 on Tuesday, down from $3.78 a week ago and far from June's high of $5.01. However, the price per gallon is approaching $5.50 in California.
In California, the average price on Tuesday was $5.434. Although well below the June high ($6.43), it is up from $5.27 a week ago, $5.39 on Sunday and $4.39 a year ago. This trend is contrary to that of the rest of the states, which are seeing a decrease in their prices.
There are several factors being used to explain these price increases, starting with lower fuel production due to problems in the refineries coupled with the heat wave that has been sweeping the state, added to this are the economic problems facing the country. The geographic factor is also important, as oil from the Gulf of Mexico reaches the East Coast and Midwestern states more easily. However, numerous analysts highlight two fundamental factors that are avoidable: high taxes and excessive regulation in the state governed by Gavin Newsom.
High taxes and eco-stifling policies
The taxes motorists pay at any Californian pump are the highest in the country. Additionly, the state has some of the strictest environmental laws and and is spearheading initiatives aimed directly at banning gas-powered cars banning gas-powered cars and thus wiping gas stations off the map.
The federal Department of Energy noted in its June analysis that:
California's reformulated gasoline program is more stringent than that of the federal government. In addition to the higher cost of this cleaner fuel, state gasoline taxes in California are higher than in most states.
From a political point of view, the debate over the cost of gasoline has stormed it´s way to the top of issues to be contested in the November mid-term elections. Californian Republicans believe that both tax and environmental policies may take their toll on Democrats, who currently run the state government.
"The Legislature had an opportunity to offer real relief to Californians by suspending the gas tax," Republican House candidate Kevin Kile said Tuesday. Instead, "the Supermajority chose to create a Select Committee that does nothing in an attempt to create political cover. Now our residents are paying the price," Kile noted.
Legislators who voted against my bill to suspend the gas tax are now simply denying it on the campaign trail. It's almost like that was the plan all along.
- Kevin Kiley (@KevinKileyCA) September 13, 2022
The candidate was referring to the California Democrats' refusal to suspend the state gas tax (which now stands at 53.9 cents per gallon). Instead, they opted to approve a repayment plan of $9.5 billion in direct payments to families. A reimbursement that has not yet been made.
