Los Angeles (CBSLA) – The gas price continues to rise dramatically throughout the Southland and has now reached its highest level since 2012.
A gas station in downtown Los Angeles on June 22, 2021. (Getty Images)
According to the AAA, the average price for a gallon on Tuesday in the greater Los Angeles area is $ 4.33, the highest since October 2012.
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According to Jeffrey Spring, spokesman for AAA in Southern California, the average price has increased over $ 1 a gallon since the beginning of the year due to a sharp spike in the price of oil and increased demand from more people commuting to work.
On July 1, a new California gas tax increase went into effect, increasing the price of normal gas by six tenths of a cents. The state gas excise tax is now 51.1 cents per gallon, the highest of any state in the nation.
The increase is part of Senate Bill 1, the Road Repair & Accountability Act, passed by California legislature in April 2017, which includes increases in gasoline taxes and vehicle registration fees. The money raised through the gas tax is used for bridge and road repairs.
The tax increases annually based on the California Consumer Price Index.
When it came into force in November 2017, it increased the gas tax by 12 cents. In July 2019, it then rose by a further 5.6 cents to 47.3 cents per gallon. In July 2020 it rose by another 3.2 cents to 50.5 cents.
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Patrick De Haan, head of petroleum analysis at Gasbuddy.com, said prices would rise due to increasing demand as the economy re-opened.
“On July 4th and during the summer months, Americans take to the streets, which drives demand to near-normal levels. But because of the pandemic that has caused oil production to decline, we are basically facing a supply shortage, ”said De Haan.
De Haan also says that California has the highest gasoline taxes in the country compared to any other in the country, the latest increase going into effect July 1st to pay for bridge and road repairs.
“It has the dubious difference that it is one of the few places in North America that has a carbon management program, ie cost of carbon emissions. It has the strictest grade of gasoline in the country required by the California Air Resources Board. In addition, there is a lack of energy infrastructure, in this case pipelines, which could help mitigate some of the high prices by bringing in products from other areas, ”said De Haan.
So when will prices fall? De Haan doesn’t believe until sometime in the fall.
“In fact, gasoline demand continues to improve, we may see an increase in demand by the end of July or beginning of August 41 and with that, gas prices could rise in the next few weeks. Now remember that we are in the middle of hurricane season which can affect price, ”he said.
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