LOS ANGELES, CA — Los Angeles residents battling inflation and an ongoing pandemic may find some relief at the gas station this summer. According to Governor Gavin Newsom’s budget proposal, the state’s summer gas tax hike may not take effect.
Newsom unveiled his budget plan Monday, introducing his $523 million dollar gas tax vacation.
“We’re going to top it up in terms of the tax itself for transportation projects so there’s no direct impact on investment,” Newsom told reporters.
The inflation adjustment on gasoline prices would hit Californians in July.
Last year, California’s gas tax rose 51.1 cents on July 1. An analysis by Stillwater Associates last year found that Golden Staters paid about $1.18 cents per gallon in taxes and fees, KTLA reported.
The Golden State is not only the most populous state, it is also one of the most expensive places to live. No one feels this more than LA’s motorists, as the state still has the country’s most expensive gas.
“Oil prices are rising again because of” [to] civil unrest in a few oil-producing countries, but that impact appears to be dampened by concerns about what the Omicron variant of Covid could do to fuel demand,” Jeffrey Spring, spokesman for the Automobile Club of Southern California, said in a statement. .
According to AAA on Wednesday, average regular gasoline prices in California rose to $4.65 a gallon in January, just 10 cents below the highest recorded average price of $4.71 on Nov. 27, 2021.
In Los Angeles, the average price for regular gas this week was $4.68, about the same as the highest average price recorded in November, according to AAA on Wednesday.
The median national price was $3.30 Wednesday, AAA reported.
Southern California drivers kicked off the new year by paying the region’s highest-ever average price for January; the statewide average is 30 percent higher today than it was a year ago, when it was $3.26 a gallon said Spring on Thursday.
While most Californians are faced with gas prices that hover uncomfortably close to $5, a gas station along an iconic stretch of State Route 1 through Big Sur boasted what could be the costliest price of fuel in the nation: A station in Gorda had a price tag of around $5. $7.59 a gallon.
California gas prices are shockingly high, with experts suggesting that strong oil demand, low supply and rising oil prices were the cause of the skyrocketing price at the pump.
“What has caused prices to rise is the imbalance in the market,” Patrick De Haan, chief of petroleum analysis at GasBuddy, previously told SFGate. “Supply is still 10-15 percent below pre-Covid levels, while demand is back at pre-Covid levels, reaching all-time highs at some points this summer.”
- Here are some tips from AAA to get better gas mileage.
- Avoid “jack rabbit” starts, fast accelerations and hard braking. These actions can reduce fuel consumption by 15 to 30 percent.
- Avoid excessive idling. A car engine typically consumes a quarter to a half liter of fuel per hour at idle.
- Avoid commuting during rush hour, the busiest time of the road.
- Set traffic lights in time to keep up the momentum and avoid stop-and-go driving.
- Use cruise control.
- Drive instead of idling to warm up the engine.
- Use a prepaid fast pass on toll roads.
- For manual drivers, shift gears efficiently by upshifting as quickly as possible. When stationary, use the brakes instead of downshifting.
- Watch your speed. Fuel economy peaks around 50 mph in most vehicles. Reducing highway speed by 5 to 10 mph can increase fuel economy by 7 to 14 percent, according to AAA.
A deteriorating rise in gas, food and rent prices hampered Californians throughout the holiday season.
Inflation last month jumped to its fastest pace in nearly 40 years, peaking at 7 percent from a year earlier, pushing up household spending and driving wage increases and putting pressure on President Joe Biden and the Federal Reserve. to confront what has become the greatest threat to the US economy.
In the Golden State, prices for cars, gas, food and furniture rose sharply as part of a rapid recovery from the pandemic recession fueled by massive infusions of government support and emergency intervention from the Fed, which cut interest rates. As Americans ramped up spending, supply chains came under pressure from labor and raw material shortages.
The Labor Department reported Wednesday that the consumer price index — the measure of inflation excluding volatile food and gas prices — rose 5.5 percent in December, the largest increase since 1991. The CPI rose 0.5 percent overall from November. , from 0.8 percent the previous month.
With California revenues at an all-time high, Newsom proposed a budget that would cut taxes to offset the effects of inflation.
“We have the capacity to invest in our growth engines, invest in the future and ensure we prepare for the uncertainties that the future brings,” Newsom said.
The Associated Press contributed to this report.