While the price of gas has gone below a dollar in some parts of the nation, it seems like Californians are paying more. That is because we are, and reporter David Haldane explains why…
Ever felt like the price of gas where you live seems higher than almost anywhere else? If you have, there’s a good reason: because it is. And if you’re wondering who to blame, you needn’t look much further than Sacramento.
At least that’s the view of petroleum consultants recently questioned on the subject. Their view: that combined federal and state taxes add about 59 cents per gallon to the price of gas in California. Throw in another 12-plus cents for the state’s “cap and trade” market and low-carbon fuel standards and, well, you have the most expensive gas in the country. Oh, and let’s not forget some healthy profits for the state’s already well-heeled suppliers.
Ah, but there’s some good news on the other side of the coin: even after all that, the state’s gas prices are lower than they were before. One result: more Californians are hitting the road, increasing their fuel consumption by 3.5 percent last year to reverse a seven-year trend.
Bottom line: those profits are probably safe.
WHY THE PRICE OF GAS IS HIGHER HERE
