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Opinion: Why gas may soon cost $8 a gallon in California
@Source: sandiegouniontribune.com
Could California’s gas really reach $8 per gallon next year?
Yes, here’s why:
In addition to the state’s highest in the nation gas taxes, Gov. Gavin Newsom’s policies are forcing two major California refineries to shut down this year, driving prices even higher. These refineries currently supply nearly 20% of California’s gasoline. Fuel shortages from the loss of these refineries will dramatically impact prices next year.
Valero, in explaining its decision, cited “years of regulatory pressure” and environmental lawsuits as the major cause for its refinery’s closure. An analysis by USC business professor Michael A. Mische indicates the closures of the Phillips 66 and Valero refineries will trigger a sharp spike in fuel prices. Mische points specifically to ABX2-1, a new law empowering California to regulate refinery operations, inventories and even profits as additional reasons refiners are no longer willing to invest in California. Moreover, policies like seeking to ban gas automobiles and regulations mandating elimination of fossil fuels make it difficult for energy producers to operate in California.
Fuel prices will continue to increase because of low supplies in the Golden State. It’s supply and demand, and without the ability to make a return on their investments, investors will not continue to bet on gasoline refineries in a state that is openly hostile to refiners, and increasingly to vehicles in general. Consumers should logically expect fuel prices to dramatically increase in years to come. It shouldn’t be a surprise that when we head in the wrong direction long enough, we finally get there.
These new policies are on top of an already-extreme regulatory agenda that aims to ban gas engine cars, charge road user fees for every mile we drive and spend tax dollars building bike lanes rather than fixing our roads and improving traffic. It’s a woke war on working families, designed to force Californians out of their cars and fundamentally change our way of life. California policymakers’ are advancing a radical strategy to take away our freedom of mobility and force public transportation on working families.
I strongly support public transportation because it is a vital rung on the ladder of economic opportunity for all Californians. However, using it should be a choice — not an ideological experiment. In most parts of California, especially places like North County, East Coast-style transit systems are cost-prohibitive and geographically unrealistic.
I took two buses and a train every day for three years. I couldn’t afford a car when I began working. I know that working people aspire to the freedom of mobility and independence that owning a car provides because I’ve been there. Owning a car is an essential part of the California dream. Cars are how Californians get to work, take their kids to soccer practice, stop at the grocery store and explore the natural beauty of the Golden State.
Instead of lowering the cost of transportation, Sacramento politicians have raised the state excise tax on gasoline by 253%, reduced the number of refineries by 56%, cut in-state oil production by 63% and increased foreign oil imports by 712%.
Now, they want to make things even worse. California’s Assembly majority refused to stop the implementation of the Low Carbon Fuel Standard (LCFS) regulation that requires a new formulation— a policy that could hike gas prices by another 65 cents.
Recently, the San Diego County Board of Supervisors voted against a resolution calling for the suspension of the gas tax increase. I applaud Supervisor Jim Desmond for bringing the proposal forward and fighting for affordability relief for San Diego families.
Everything we buy is affected by fuel prices — the vehicles that deliver raw and finished goods to factories and market places, even Amazon trucks pay gas taxes that get passed directly to consumers. Gas taxes are regressive. They take a bigger chunk of working families’ paychecks than wealthier families. Working families pay the gas tax over and over again as each gallon of gas is sold in the California economy to move the essential goods they rely on.
California’s high gas prices are self-inflicted. With better policy decisions, we could ease the burden on working families and help fight the affordability crisis. We need leaders who will fight for affordability and stand up to out-of-touch policies.
Franklin is the mayor of Vista.
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