Why does petrol cost more than $5 a gallon in Cal As the weather gets warmer, pain at the pump is coming back.
The average price of petrol in the state is now more than $5 a gallon. A lot of people in California pay more than $5 a day.
California leads the nation again with the highest gas prices—the only state over $5/gallon. It’s a direct consequence of our broken policies which include over $1 in hidden taxes per gallon. All on top of the $600 million gas tax Sacramento Democrats just approved last month. pic.twitter.com/o5sWoFc26O
— Bill Essayli (@billessayli) August 2, 2023
https://twitter.com/jonnajarian/status/1772261746062827815
People saw a sign that said $5.69 per gallon at a petrol station on Eight Mile Road in Stockton. Economists say that people in California are especially at risk from these high costs.
“I can’t afford gas,” said driver Jacob Luis when we told him about the high prices.
“Anything over six, man, and I’m thinking, ‘Oh no, they’re going up again,’ ” said driver Tyler Raines.
Professor of finance at Sacramento State, Dr. Sanjay Varshney, said that petrol costs are going up for four main reasons, two of which affect the whole country.
“One, tension in the Middle East, and the war in Ukraine,” he stated. “Second, we see summer demand going up anyways.”
There are two that only affect people in California. One reason is that petrol shops need to make a summer blend that meets state emissions standards.
Varshney added, “And our petrol tax is very high.” “You take all four and combine them and it’s a complete disaster at the pump for the consumer.”
That is clear from the prices. AAA found that petrol prices in California were 60 cents less than they were a month ago. They were almost 50 cents less than they were last year.
“Ordinary people are paying the price, not just for global reasons, but more so for local reasons,” he said.
CBS13 was told by the California Department of Tax and Fee Administration that legislative groups are working on ways to help Californians with petrol prices, but it might take a while.
You might save some money in the short term if you drive less or use apps like GasBuddy to find the cheapest petrol near you.
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