The High Cost Of Driving In California Is No Accident

The High Cost Of Driving In California Is No Accident

How about some gas facts?

In late October, the highest price for gasoline in the country was a “mind-numbing $7.59 a gallon” for regular, $8.50 for premium in Gorda, on California’s central coast.

The average prices for regular, mid-grade, and premium are highest in California, $4.60, $4.78, and $4.90 a gallon, respectively, according to AAA. Prices are rising nationwide, but those numbers are still far in excess of the U.S. average of $3.40 a gallon.

The average gasoline price in Los Angeles had risen for 18 straight days through Oct. 29.

Late October was also when gasoline prices in San Francisco reached an all-time high, passing “the previous record of $4.743 per gallon, set over 3,300 days ago in 2012,” says Gas Buddy.

California shows up as an outlier far out of sync with the rest of the nation in the Gas Buddy price heat map.

Two days before Halloween, “parts of California,” most of them in the northern half, “recorded their highest average gas prices ever,” KTLA reported.

None of this is due to bad luck or unhappy coincidences. Nor can “profiteers” or speculators be blamed for the surge. The high prices are by design. The factors driving prices them are the products of deliberate policymaking:

  • California has the highest motor fuel taxes in the country – 67 cents a gallon, says the Tax Foundation, using American Petroleum Institute data. Second highest are in Illinois, 60 cents a gallon. The national median is about 30 cents a gallon.
  • Due to “big-government energy policies,” California drivers pay a 37% premium for gasoline compared to the national average. Backing off these mandates would have saved drivers $9.6 billion in 2020 over 2019.
  • Carbon cap-and-trade policy adds more than 14 cents a gallon to the cost of gasoline in California.
  • As requirements of cap-and-trade and the low carbon fuel standard become more demanding, their costs will continue to add up, reaching a range from 89 cents to $2.10 a gallon.

Let’s end with a quiz. Who said: “Somehow, we have to figure out how to boost the price of gasoline to the levels in Europe”?

No, it wasn’t a California official. It was Steven Chu, a Berkeley-trained, Nobel-winning physicist who taught at Stanford, and was serving as the Obama White House’s secretary of energy when he made the statement. The words just happen to sound a lot like those a Sacramento lawmaker would string together.

Kerry Jackson is a fellow with the Center for California Reform at the Pacific Research Institute.

 

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Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.