Paying over $50.00 for a full tank of gas in California has become an economic norm. Especially with teens these days learning how to drive, gas is often prevalent in most of their monthly spendings. These high gas prices are not an accident. In October of 2019, the average California price for a gallon of regular reached $4.18, whereas the national average is $2.65, and even in states like Texas, have an average of $2.305.
Governor Gavin Newson on Monday asked the state attorney general to investigate whether California's leading oil and gas suppliers are involved in price-fixing or other unfair practices. He even said, "It's really time to find out the reason consumers have spent many billions of dollars over the years". Well, they found that even after accounting for the state's high gasoline taxes and unique environmental rules that impose stricter refining standards, Californians still paid 40 cents per gallon more by the end of 2018 that did drivers in other states.
CNN reports that the reason for the recent spike in gas prices is because of "a number of refinery outages", even though that does not seem reasonable. That is just blaming a temporary event for what is simply a long term reality. The lowest price Californians have experienced during 2019 (according to the EIA) was $3.206. While Texans paid $1.962 the same week.
So...what is California Government going to do about these prices? California state and city governments are 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 traffic jams. This may seem like it would make the issue worse, but these policies are designed to encourage car-pooling and the use of modes of public transportation.
Myers, John. “California's High Gas Prices Will Be Investigated for Possible Price Fixing.” Los Angeles Times, Los Angeles Times, 21 Oct. 2019, www.latimes.com/california/story/2019-10-21/gavin-newsom-california-high-gas-prices-should-be-investigated.
Ricadela, Aaron. “As Tropical Viruses Creep Northward, Visualizing a Potential New Vaccine.” Forbes, Forbes Magazine, 26 Sept. 2019, www.forbes.com/sites/oracle/2019/09/25/as-tropical-viruses-creep-northward-visualizing-a-potential-new-vaccine/#4483b6367cbb.
Because gas is an essential good and people have to buy it in order to drive their cars, it makes sense that gas prices are so high. I think because the residents of California have more many than most other states, it seems appropriate for gas companies/government to charge more. People are going to keep paying these ridiculous prices since it is out of their control and gas is a necessity. However, this doesn't make it okay. I believe that gas should be the same prices throughout the nation because it is the same product being sold to people and it's not like there is something different about gas in California that makes it stand out from gas in other states.
ReplyDeleteGas prices in California are also high because California wants people to stop using fossil fuels. It is clear that there is a shift in California to more renewable forms of energy. But even though the state wants people to change their habits the tax might be overkill. They may need to cut back on the tax to make it more affordable for the average citizens. But as of right now renewable energy in transportation is not affordable for all citizens. California should reduce their tax.
ReplyDeleteGas prices in California have risen to be so high, that the price of Diesel fuel is actually lower than the lowest grade of gasoline, as shown in your picture. This is especially significant, as generally diesel prices are higher than that of gasoline nationwide. This usually is because only 2 percent of American automobiles drive diesel powered vehicles, meaning that the rare gas stations that do sell diesel hold local monopolies and can set prices higher. This demonstrates how dire California's issue with gas prices is.
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