News Summary
Gas prices in Los Angeles have recently dipped to $4.546 per gallon, the lowest since February 2023, with a decline of 23.3 cents compared to last year. However, concerns arise over possible future price increases due to upcoming tax hikes and refinery closures. California experts warn that prices could surge by July, reaching potentially $8 per gallon by 2026. As the state grapples with economic disparities, lawmakers are debating gas tax suspensions amidst ongoing fluctuations. The California Energy Commission is working with refiners to ensure a stable fuel supply.
Price Drops in Los Angeles But Future Concerns Loom
The city of Los Angeles is buzzing with news that gas prices have shown a bit of relief lately. The average cost for a gallon of self-serve regular gasoline has dipped down to $4.546, marking the lowest price we’ve seen since February 4, 2023. If you’ve filled up your tank lately, this slight decline might bring a smile to your face!
Recent Trends
Over the past week, gas prices in Los Angeles decreased by 2.9 cents. If you look even further back, you’ll see that prices have dropped 14.7 cents in the past month and a substantial 23.3 cents compared to last year. Remember when prices peaked at an astounding $6.493 on October 5, 2022? We’ve seen a decrease of $1.947 since those dizzying heights, giving us some breathing room at the pump.
Meanwhile, in Orange County, the average price increased slightly, ticking up by half a cent to $4.492. While that might not feel great, it’s 1.1 cents less than last week and shows a decline of 11.1 cents from last month. Compared to last year, Orange County gas prices are down by 20.8 cents. Guess what? Even the national average gas prices are catching up, rising by 1.3 cents to $3.162, which is still 1.9 cents less than last week.
A Potential Price Surge Ahead
While we’re enjoying these recent dips, experts are warning that rising gas prices could come back and hit us hard by July. Why? Well, California is gearing up for a state sales tax hike and new environmental regulations that could raise prices by nearly 70 cents per gallon. On July 1, the excise tax on gasoline will see a bump from 59.6 cents to 61.2 cents per gallon, with the diesel fuel tax rising from 45.4 cents to 46.6 cents.
Moreover, California’s Low Carbon Fuel Standard (LCFS) program is also aiming to cut down the carbon intensity of fuels. Although earlier estimates suggested the LCFS amendments could increase gas prices by 47 cents per gallon, recent reports from regulatory bodies have pushed back against those higher projections, leaving many skeptical.
Refinery Closures on the Horizon
Unfortunately, it’s not just taxes that might cause a spike. Experts fear that upcoming refinery shutdowns could lead us to a shocking $8 per gallon price by 2026 due to a dwindling refining capacity and ongoing supply issues. The closures of Phillips 66 in Los Angeles and Valero’s Bay Area refinery will remove about 300,000 barrels per day from California’s refining capabilities. This all seems to stem from strict regulations, rising operational costs, and shifting market dynamics.
Affecting the Wallets of Many
Many locals are worried about how higher gas prices could hit lower-income Californians the hardest, exacerbating existing economic disparities. In response to rising costs, some lawmakers are pushing for a suspension of the gas tax, although state officials are countering predictions of dramatic price increases, calling them misinformation.
Looking Forward
In light of the recent price drops, the California Energy Commission has been tasked with collaborating with refiners to ensure we have a stable fuel supply moving forward. With the state transitioning to stricter standards, there is a chance that current price benefits might evaporate, leading to further spikes at the gas station.
It’s a rollercoaster ride at the pump, and with the upcoming shifts in taxes and regulations, we’re all left checking our wallets as we await what might happen next. Buckle your seatbelts, Angelenos; it seems like the gas story is just getting started!
Deeper Dive: News & Info About This Topic
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Additional Resources
- Los Angeles Times: Summer Road Trip and Gas Prices
- NBC Los Angeles: Gas Prices Rise on July 1
- ABC7 News: California Gas Prices Could Top $8 Per Gallon
- MyNewsLA: Little Change to LA and Orange County Gas Prices
- Newsweek: California Gas Prices Hike
- Google Search: California gas prices
- Wikipedia: Gasoline
- Encyclopedia Britannica: Gasoline
- Google Scholar: Gas prices California
- Google News: Gas prices California
