News Summary
Los Angeles County has recently witnessed a drop in gas prices, with prices averaging $4.612 a gallon, marking the lowest since February. The decrease provides relief to drivers, with prices lower than last week and last month. However, there are concerns about potential future increases due to state tax hikes and refinery closures. Nationally, prices remain lower than a year ago, but experts warn of significant price surges by 2026.
Los Angeles Gas Prices: A Dive and a Rise Worth Watching
Los Angeles County has recently seen a welcome decrease in gas prices, with the average price of self-serve regular gasoline dropping to 4.612 dollars a gallon—marking the lowest point since early February. Over the last three days, prices have decreased by 3.8 cents, bringing a little relief to drivers. This reduction is notably appreciated as gas prices are currently 3.6 cents lower than just one week ago and a remarkable 19.1 cents lower compared to a month back. Even more interesting, prices have dipped 18.7 cents since this time last year.
In the fall of 2022, consumers were reeling from an astonishing high of 6.493 dollars on October 5. Thankfully, since that peak, average gas prices have dropped by 1.881 dollars. Meanwhile, Orange County is also seeing good news, with prices going down by 1.1 cents to 4.546 dollars a gallon, tying its lowest since February 5 this year.
A Glimpse at the National Average
Nationally, things appear less shiny, as the average price for gasoline has nudged down to 3.22 dollars after a series of ups recently. While that’s a slight increase of 1.5 cents over last week, it’s also a 4.1 cents increase compared to the last month. Yet, if we take a broader look back a year, national prices remain lower by 27.4 cents.
What Lies Ahead? Potential Price Increases
However, it’s not all sunshine and rainbows. California’s budget planners are urging residents to brace for rising gas prices by July 1, as the state plans to increase its excise tax on gasoline from 59.6 to 61.2 cents per gallon, which could mean a slight sting at the pump. The tax for diesel fuel will also see an increase from 45.4 to 46.6 cents, impacting more than just regular drivers.
The state is also introducing a Low Carbon Fuel Standard, pushing fuel producers to make stronger commitments to cut carbon emissions. This is all coming at a time when major California refineries, including Phillips 66 and Valero, plan to close down by 2026. This closure could sizzle out 8.9% of current refining capacity and potentially eliminate around 300,000 barrels-per-day of producing power. Some experts predict that gas prices could skyrocket between 7.348 and 8.435 dollars per gallon by the time we hit the end of 2026. That’s a significant leap that has plenty of experts raising red flags.
Concerns from Officials and the Public
Local officials and politicians are increasingly worried about how such price hikes could choke family budgets and squeeze local businesses. Some critics argue that California’s all-too-high gas prices are largely self-inflicted, stemming from various policies, taxes, and regulations.
With these soaring prospects in mind, many are wondering if we might see an uptick in public transportation usage as residents search for ways to dodge unforgiving fuel costs. As closures loom and new regulations take effect, it’s possible that California’s ongoing cost-of-living crisis could deepen, affecting everyone from commuters to local shop owners.
Seeking Stability
In light of these looming changes, measures may soon be on the table. Governor Newsom has tasked the California Energy Commission to kick-start discussions around recommendations aimed at ensuring a more stable fuel supply in the near future. As the world turns, it seems Los Angeles drivers will have to keep one eye on gas prices and another on the regulation landscape!
Deeper Dive: News & Info About This Topic
HERE Resources
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Southern California Sizzles: Hikers Rescued Amid Heat Wave
California’s Green Energy Transition Raises Household Costs
California Gas Prices Expected to Soar Beyond $8 Per Gallon
California Faces Dramatic Surge in Gas Prices Amid Refinery Closures
California Faces Major Gas Price Surge Due to Refinery Closures
Valero Energy Faces $1.1 Billion Write-Down on Refineries
Rainy Days Ahead for Southern California
Major Development Plans Unveiled for Huntington Beach
Additional Resources
- Los Angeles Times: Ready for a Summer Road Trip?
- Newsweek: California Gas Prices Hike
- Stacker: How Gas Prices Have Changed in Los Angeles
- Encyclopedia Britannica: Gas Prices
- The Center Square: California Gas Prices
- Google Search: California Gas Prices
