The Gas Prices rise drastically across Southern California, now hitting their highest point since 2012. According to AAA, the average price of a gallon of regular Tuesday in the Los Angeles metropolitan area is $4.33, the highest since October of 2012.
According to Jeffrey Spring, the average Gas Prices has increased by over $1 a gallon since the start of the year. This is due to the sharp increase in the oil price and increased demand due to more people driving to work. A new California gas tax hike took effect July 1, increasing the price of regular gasoline by six-tenths of a cent. The state gas excise tax is now 51.1 cents per gallon, the highest of any state in the nation.
The hike is part of Senate Bill 1, the Road Repair & Accountability Act, which the California Legislature passed in April of 2017 and includes increases in gas taxes and vehicle registration fees. The money raised by the gas tax goes towards paying for bridge and road repairs. The tax increases annually based on the California Consumer Price Index.When it took effect in November of 2017, it increased the gas tax by 12 cents. It then went up another 5.6 cents in July of 2019, to 47.3 cents per gallon. It went up another 3.2 cents in July of 2020 to 50.5 cents.
Patrick De Haan, head of petroleum analysis at Gasbuddy.com, said Gas Prices are going up because of rising demand as the economy reopens. Americans are taking to the road for July 4 and into the summer months, which is pushing demand up to near-normal levels. The pandemic caused oil production to decline, we’re faced with basically a shortage of supply.