Gasoline prices in California hit a new high on Wednesday and are projected to stay near $5 for some time. A couple more months of $5/gallon gas in California. “It may become worse if Russia exacerbates the problem,” said GasBuddy petroleum analyst Patrick De Haan. Oil is expected to climb due to Western sanctions on Russia for its activities in Ukraine.
On Wednesday, the AA reported that the average gallon of regular gasoline in California was $4.75. Crude oil prices have been flirting with $100 a barrel this week, compared to $50-60 per gallon a year ago.
Given that Russia produces 10% of the world’s oil, the White House’s sanctions may cause a spike in oil prices. Only Saudi Arabia and the US generate more petroleum and other liquids. Consumption should grow when the weather improves and people travel more. Demand has already increased prices.
Seasonality is causing prices to climb slowly, De Haan said. Gas in California is still the most costly in the US due to high state taxes.
According to the American Petroleum Institute, the state has the nation’s highest fuel taxation. On January 1, California collected 86.55 cents per gallon in fuel taxes and levies. Illinois had 78 cents. The national average was 57.09 cents.
Some lawmakers have recently proposed suspending the federal gasoline tax, which has been maintained at 18.4 cents per gallon since 1993. Rep. Josh Harder (D-Turlock) proposes a gas tax holiday. The levy funds road upgrades, but Harder’s bill diverts that money to other uses. The idea is a no-go for Maya MacGuineas, chairwoman of the Committee for a Responsible Federal Budget.
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Our massive government debt will only increase and hamper efforts to assure sustainable infrastructure funding, she wrote in The Hill. Inflation-related increases in gasoline and diesel taxes were slated for July, but Gov. Gavin Newsom advocated deferring them.
“If economic conditions warrant it,” he said in his budget blueprint, he may postpone rises in 2023 and 2024. His suggestions have yet to be adopted.
The map below utilises AAA data, which was updated on Wednesday. Average regular gas prices per California county.
In the following metro regions, fuel prices soared on Wednesday, February 23:
Los Angeles
The highest average was $4.79 on February 23rd.
SAN Diego
It peaked at $4.75 on February 23.
San Francisco
On February 23, San Francisco saw an average of $4.91.
OAKLAND
On Feb. 23, the highest average was $4.82.
The current average regular petrol price in Sacramento is close to the November high. It is presently $4.72 a gallon, 11 cents higher than a month ago and $1.22 more than a year ago. The cheapest fuel in the capital region maybe $5 per gallon by spring.