California Gas Prices

California Gas Prices Hit 5-Year High And Highest In Nation

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On California Gas Prices Hit 5-Year High And Highest In Nation Was PUBLISHED On October 8th, 2019

California Gas Prices Hit 5-Year High and are now the highest in the nation:

  • California Gas Prices are double the national average prices of gasoline
  • Average California Gas Prices posted on October 1st, 2019 has now reached over $1.50 the national average
  • This marks the highest California Gas Prices in five years
  • The statewide average in the state of California for a gallon of regular gasoline hit $4.13
  • This is the highest price level since one month earlier
  • California Gas Prices are now the highest in the nation
  • The national average is $2.67
  • Gas prices are now at the highest levels of the year and seem it keeps on climbing every week
  • This week, gas prices hit another new high at $4.22 per gallon for regular gas

In this article, we will cover and discuss California Gas Prices Hit 5-Year High And Highest In Nation and how this is crippling housing values in the state. Many are worried the gas prices are increasing too rapidly, hurting their household income. California Gas Prices increased an average of 48 cents statewide last month. Los Angeles has the highest gas prices in the state.

Reason California Gas Prices Are Increasing

Why California Gas Prices Are Increasing

California is the most populous state in the United States. California also is one of the top five states where taxpayers are fleeing the state due to the high cost of living. Average home prices are double the national average home. California is one of the nation’s highest-taxed states. Everything from the gas tax, to sales tax, and state income taxes are the highest in the nation. California Gas Prices have always been one of the highest of all states in the nation. However, this is the first time that the California Gas Prices hit double the national average. California’s carbon laws add to the cost of fuel. State gas tax is one of the highest in the nation which also adds to the cost of fuel.

Michael Gracz of Gustan Cho Associates said the following:

The later surge is primarily blamed on setbacks at several local refineries, including unplanned maintenance at the Chevron and Marathon facilities in L.A. County, AAA spokesman Jeff Spring said in a news release last week. California’s limited ability to import gasoline from other places during times of disruption is another major reason for skyrocketing costs. Finally, the attacks on major oil fields in Saudi Arabia last month also contributed. California refiners depend on Saudi Arabia for about 20 percent of their oil needs. The state’s unleaded gasoline inventories dropped 21 percent last week from the previous week, as production dropped by 18 percent, he said, citing the California Energy Commission. West Coast gasoline inventories also plummeted to the lowest levels since early May. Experts predict California gas prices haven’t peaked just yet, but they do expect a decrease soon. Prices will likely continue to stay high for a number of days, depending on how quickly local refineries can re-start and increase production according to the AAA.

Mike Gracz expects that gas prices can increase again the next several weeks with increases anywhere between 40 to 90 cents. Many are awaiting a peak and stabilization of gas prices.

Recommendations On How To Conserve Fuel And Live In High Gas Priced Economy

The AAA has provided some recommendations to motorists in conserving fuel.

Here are the recommendations by the AAA:

  • Drive at steady speed instead of accelerating and braking and accelerating
  • Not every gas station have the same gas prices so shop for the best price per gallon
  • Travel light by emptying your vehicle of baggage that you do not need to travel with
  • Eliminate the use of air conditioning unless absolutely necessary

High-Cost Of Living Is Forcing Residents To Leave California

California has its own financial issues. The state is financially strapped. Due to budget deficits, state lawmakers are increasing taxes in all areas. California gas tax is the second-highest in the nation right behind Illinois. The state’s police and fire pension fund is the second underfunded fund in the nation right below Illinois. State lawmakers and the governor’s solution in fixing the California crisis is raising taxes. Due to rising taxes, home values, gas prices, and cost of living, many Californians are fleeing the state to lower-taxed states with a lower cost of living. This is a developing story at Gustan Cho Associates Mortgage News. We will keep our viewers updated as news develops in the coming days and weeks. Stayed Tuned!!!

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