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Share via E-mailThese days, just looking at a gas price sign can be stressful. And for some, buying gas may be an expense that breaks their budget.
The Auto Club of Southern California says the average price of gas in L.A. has risen more than 40% since this time last year. The average gallon of regular now costs around $5.70.
Although California gas prices are dropping, California still has the highest gas prices in the nation.
In some locations, premium gasoline can reach $7 per gallon – leaving commuters wondering: Why is gas so expensive here?
“It’s multiple answers, it’s a whole bunch of things spread out over a period of time,” said Mark Lacour, editor in chief for Oil and Gas Global Network, who has been in the oil and gas industry for over 25 years.
Some of the answer has to do with the war in Ukraine, which caused a spike in energy prices worldwide. But a number of other factors keep California’s gas prices consistently higher than the national average.
Among the many factors: the price at the pump reflects both federal and state taxes, said Jimmy Troderman, an economist at U.S. Energy Information Administration.
Drivers currently pay an extra 51 cents per gallon, which the state uses to fund the transportation department and highway repairs.
“So in California, they have the second-highest gasoline tax,” Troderman said, “but then once fees are added, they have the highest tax.” said .
Another driver of California’s high gas prices: regulation.
Since 1995, state lawmakers in conjunction with the Environmental Protection Agency have required California’s oil refineries to produce cleaner-burning fuel to improve air quality — and that cleaner blend is more expensive.
“And then there are geographical factors,” Troderman added. “California is not close to most of the refining hubs in the U.S. and they don’t have the ability to import gasoline through pipelines because they don’t really have many interstate pipelines… Recently, in March, a couple of the refineries in California went down temporarily, which contributed to higher prices.”
LaCour added that seasonal factors also affect the price of gasoline.
“We have two blends of fuel in this country. We have a winter blend and a summer blend,” LaCour said, “so every time we switch to the other blend — and this is to keep air quality high to reduce pollution — there’s a bump in prices and we are ready to see it soon when the summer blend gets released…
“The refineries part of the industry that turns crude oil into gasoline — into fuels — operates at a really low margin,” LaCour added, “so any increase in their cost is automatically passed on to the consumer.”
According to AAA, California’s gas currently costs almost $1.60 more per gallon than the national average.
The recent spike in prices has prompted calls for relief.
Governor Gavin Newsom has proposed sending direct payments of $400 to Californians with one registered vehicle, and $800 to residents with two or more vehicles. Residents without cars won’t receive checks, but Newsom’s plan also calls for $750 million in aid to local public transit agencies. Republican lawmakers prefer a plan to suspend California’s gas tax.
High gas prices could have real political implications.
Republicans hope voters will be inclined to blame a Democratic White House for higher gas prices in the upcoming midterm elections.
“It would be very easy to drop fuel prices in California if the politics would change,” said LaCour.
This story was produced by Gitanjali Mahapatra, Debbie Martinez & Tracy Mejia
