The cleaner-burning gas is more expensive to produce, so California sees an increase in prices of about 10 to 15 cents per gallon. Even in Hawaii, normally the most expensive, prices were about 20 cents a gallon cheaper. He is currently Associate Editor for Shale Magazine (www.shalemag.com), a contributor on energy-related matters at Forbes.com, and a feature writer for World Oil Magazine. And these costs will increase. Global demand in 2008 was actually down and global supply was up. But the national average was $2.14, a 33-cent drop. Maore than 70 mayors of some of the worlds largest and most influential cities representing some 700 million people meet in Copenhagen from October 9-12 for the C40 World Mayors Summit. But the real reason we’re paying so much more is high taxes and expensive regulations imposed by Sacramento politicians. Also youth leaders from the recent Climate Strike participate. This drove gas prices to $4.11 a gallon. In contrast, the national gas price average was $2.65 per gallon, which represents a spike of 9 cents per gallon over the previous month, but is 26 cents per gallon cheaper than the national average price in October 2018, according to AAA. Also youth leaders from the recent Climate Strike participate. Right now, California is home to the highest gas prices in the United States. in accounting in 1979. He attended Texas A&I University and The University of Texas, earning B.A. Adopted as part of California’s efforts to address global warming, the state’s low carbon fuel standard currently adds around 16 cents per gallon to the price of gas. The CNN story focuses on “A number of refinery outages” having caused the recent spike, but that’s just blaming a temporary event for what is simply a long-term, probably permanent reality for residents of California. Interestingly, the influx of Californians is contributing to a shift in the political balance in Texas and those other states, as the Golden State refugees continue to vote for the same kinds of policies that caused them to flee their former home state in the first place. Their voting patterns in their new, adopted states indicate that they really don’t. But, taxes alone cannot account for California’s high gas prices. Benjamin Franklin was right that “nothing is certain but death and taxes,” though he could have added a third certainty in California – paying significantly more than the national average for gasoline. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. Tim Anaya is the Pacific Research Institute’s communications director. One outcome of these policies intentionally designed to increase the cost of living in California has been a large number of residents fleeing that state for less expensive environs. Fuel Insights ranked California as having the most expensive average price per gallon of gas at around $4.18 as of Oct. 6. About 97 cents of the current cost of gasoline in California per gallon goes to taxes. COPENHAGEN, DENMARK OCTOBER 10: Michael Bloomberg (L), Mayor of New York City and President of the ... [+] C40 Board together with Anne Hidalgo, Mayor of Paris and outgoing Chair of C40 Cities and Eric Garcetti, Mayor of Los Angeles and new chair of the C40 Cities during the C40 World Mayors Summit hand over of the chair on October 10, 2019 in Copenhagen, Denmark. On top of the more expensive fuel come California’s gasoline taxes — the highest in the country. Gas prices are spiking in California, causing angst among drivers. Governor Gavin Newsom, a supporter of recently imposed gas tax hikes has now called for an explanation for the state’s high gas prices. If robust world demand increases the price of gas, it would not have dropped in late 2008. He is the resident energy expert on the "In The Oil Patch" radio program, and executes frequent public speaking engagements around the state of Texas and at conferences. Related: The World's Most Expensive Crudes Get Expensive Again. They note that the Golden State experienced a 16 cent per gallon jump in just one week. For the week of October 4, the average California price for a gallon of regular reached $4.18. Gasoline price experts say there are a number of reasons for that. David has enjoyed a 39-year career in the oil and gas industry, the last 23 years of which were spent in the public policy arena, managing regulatory and legislative issues for various companies, including Burlington Resources, Shell, El Paso Corporation, FTI Consulting and LINN Energy. In fact, even with the tax increase, Californians will still not be the highest-taxed when it comes to refined oil. I can buy untaxed gas right now for $1.20/gal and diesel for $1.48. San Francisco’s figures are slightly higher, reaching $4.09 on Friday. Right now, gas in Sacramento is 25.3 cents cheaper than it was a month ago, but 14.7 cents more expensive than a year ago, according to GasBuddy. Maore than 70 mayors of some of the worlds largest and most influential cities representing some 700 million people meet in Copenhagen from October 9-12 for the C40 World Mayors Summit. California experienced a gas price surge to $3.29 a gallon in July. Thank Sacramento. Oil consumption decreased from 88.42 million barrels per day in the fourth quarter of 2007 to 87.94 million bpd in the first quarter of 2008. EIA’s explanation of why gas prices in California are so high: “California gasoline prices are higher and more variable than prices in other states because relatively few supply sources offer California’s unique blend of gasoline outside of the state. But he says California has become so accustomed to these spikes that four-dollar gas doesn’t really deter drivers anymore. In San Francisco, the average gas price hit $4.27 a gallon as of mid-afternoon Monday, according to AAA, which tracks the figures. Gasoline prices in Los Angeles are nearing the psychologically significant $4 per gallon mark. Since it doesn't have major pipelines from other regions, California had to wait for tankers with imported oil to arrive. It was the first time the state had the highest price in the country. Gas prices in San Luis Obispo County, California, are the most expensive in the United States on Friday, June 28, 2019. No conspiracies required. So, the next time you have to dig deep into your wallets to fill up, remember that you have Sacramento to thank for adding to the misery that we’re all experiencing just to buy the gas we need to drive to work or school. Evil Oil Speculators. The state has also adopted policies, like requiring cars sold in their state to have higher mileage requirements per gallon than the national requirements, that already make buying a car in California more costly than doing so in other states, and will only increase that disparity into the future. With its policies of high gasoline taxes, special gasoline requirements that increase the cost of refining and transportation, and other programs supposedly designed to reduce smog and haze, higher gasoline prices are an inevitable outcome. In yet another ranking where number one is not a good thing, Californians now pay the highest combined state and federal gasoline taxes in the nation. They point to issues with a Chevron refinery in El Segundo and a shutdown at a Shell refinery in Martinez, as well as complications from PG&E’s blackouts shutting down some gas stations that are unable to pump gas without electricity. Even subtracting out the rather high taxes on gas in California, that Costco in Simi Valley was still charging DOUBLE what a lot of Costco’s in other parts of the country are charging once you subtract out their taxes. Why are fuel costs so high? C40 Board together with Anne Hidalgo, Mayor of Paris and outgoing Chair of C40 Cities and Eric Garcetti, Mayor of Los Angeles and new chair of the C40 Cities during the C40 World Mayors Summit hand over of the chair on October 10, 2019 in Copenhagen, Denmark. Higher gasoline prices are just one part of the California government’s plan to make automobile travel much more expensive as time goes on. GasBuddy ranks California highest in the nation in gas prices, and among the country’s highest gas taxes are a major factor in why we pay so much at the pump – but there are other government policies that combine with these high taxes to make the situation … To draw an analogy, California car drivers are the proverbial frog who is being boiled. We begin with taxes. A December 2018 report by California’s nonpartisan Legislative Analyst’s office predicts that the low carbon fuel standard will increase to approximately 46 cents per gallon by the year 2030. Refinery issues in California can send prices spiking at that state's gas pumps almost immediately, because most California gasoline is produced within the state to meet tough anti-smog standards. The price increased by 5.6 cents per gallon on July 1 thanks to another gas tax increase courtesy … According to GasBuddy, California already has the highest gas prices in the country at an average of $3.77 per gallon for regular gas, an increase of 49 cents over last month’s average. You may opt-out by. Opinions expressed by Forbes Contributors are their own. The result is that the U.S. is similarly getting hammered by higher gas prices, although not nearly as badly as in Canada. Sponsored. Others, including many politicians on the left and television pundits like Bill O’Reilly, have found their target in oil and gas speculators. Gasoline sold in California costs more than in the rest of the U.S. — sometimes dramatically so. During this time, David has led numerous industry-wide efforts to address a variety of issues at the local, state and federal level, and from April 2010 through June 2012, he served as the Texas State Lead for America’s Natural Gas Alliance. According to the American Petroleum Institute, Californians now pay 80.45 cents per gallon in total federal and state gasoline taxes (including federal and state excise taxes). (Photo by Ole Jensen/Getty Images). Why Are California Gas Prices So High These Days? But that’s not all. A number of refinery outages tightened gas supply in the market. California’s state and city governments are also going about implementing policies that will reduce the number of automobile-traffic lanes and one-way downtown streets in order to force drivers to spend more time sitting at traffic lights and in traffic jams. Separately, the controversial cap-and-trade program, which was extended by the State Legislature in 2017, is estimated to add about 13 cents per gallon presently to the price of gas, according to the Legislative Analyst’s office. 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