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
HERE Resources
California Gas Prices Set to Rise: What to Expect
Gas Prices in Los Angeles and Orange Counties Drop
Gas Prices Drop in Los Angeles and Orange Counties This Independence Day
Huntington Beach Celebrates 121st Annual Fourth of July Parade and Festival
Gas Prices Drop in Los Angeles Ahead of Independence Day
Gas Prices on the Rise in California: What You Need to Know
Gas Prices in California: Current Trends and Future Predictions
Los Angeles Gas Prices: A Dive and a Rise Worth Watching
California Faces Gas Supply Crisis as Oil Refineries Close
California’s Business Landscape: Innovations and Challenges
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
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
