Whether you live in California or somewhere else, you are probably wondering, “What are California gas prices right now?” Then, you might be wondering, “What can I do about it?” Or, “Is it a good time to buy a car?” Or, you might be wondering, “What can you do about it?” Whatever the case, you are probably wondering what you can do to save money on gas.
Crude oil prices are back on the rise
Despite the recent decline in crude oil prices, California gas prices are on the rise again. According to the American Automobile Association, the price of regular unleaded in California has increased 84 cents in the last ten days. This brings the state’s average price up to $6.29, and it is up 9% from last week.
The latest spike in California gas prices was caused by an unexpected refinery shutdown, resulting in a shortage of fuel supplies. According to AAA, six of the state’s 14 refineries have been offline for maintenance in the past few weeks. The California Energy Commission will hold a public hearing on November 29 to discuss why the price spike occurred.
In addition to refinery maintenance issues, the California Energy Commission will also hear experts discuss how gasoline price hikes are driven by global refinery capacity. The Chair of the commission will ask for an explanation for the spike in gas prices.
Refining capacity declines in California
During the past three years, the state of California has experienced an ongoing decline in its oil production. Oil fields in the state have deteriorated and refineries have faced increasing regulatory constraints. During this time period, California has lost its status as the third largest oil-producing state in the nation. It has now fallen to seventh.
The state’s total refining capacity fell by nearly 4.5 percent in 2020. In fact, California’s refineries are the most sophisticated fleet in the country. They are complex and use five times more energy than a simpler refinery. They also pollute communities and can cause frequent accidents.
California has seen its demand for refined crude oil products fall since the advent of programs like Advanced Clean Car Standards. These standards require vehicles to be made more fuel-efficient and to eliminate the use of gasoline-powered vehicles. This has led to an increase in refined fuel imports and exports by similar amounts.
Gov. Gavin Newsom calls special legislative session to impose taxes on oil companies
During the past year, the price of gas in California has skyrocketed. The average price per gallon in California has hit a record high of $6.39. Meanwhile, the average price of gas in the rest of the nation has increased to $3.90.
Governor Gavin Newsom is calling for a special legislative session in order to impose a new tax on oil companies. His plan is to tax oil companies based on the profits they make. The money would be used to refund Californians affected by high gas prices.
The proposed tax is the latest in a tussle over soaring gasoline prices. California Democrats have announced the formation of a special committee to look into the problem. However, the legislature can’t take action on proposals until January. In fact, dozens of new lawmakers will take office in December.
Governor Newsom says his plan is a “windfall profits tax,” which would require oil companies to pay back excessive profits to Californians. However, the details of his proposal are still sketchy. He told reporters last week he would like to look at more than one method to tax oil company profits. He said he wanted to give the state time to find the best way.
Filling up on a certain day can maximize your savings
Taking the time to fill up on a certain day can be a key way to save on California gas prices right now. In fact, the GasBuddy app recently released a study that reveals the best days to fill up.
The study found that the average price of a gallon of regular gas in California is now $6.04, more than a week after it hit an all-time high of $5.69. However, gas prices are expected to reach $4 per gallon in coming months.
California drivers have been caught off guard by a spike in gas prices. While the price of gas is still about 16% higher than last year, the average price of a gallon of gas has risen over $1 per gallon since June 16. The spike came after oil suppliers reduced their production levels to meet the reduced demand.
If you drive regularly, it’s important to check for the cheapest gas stations along your route. Gas prices tend to be more expensive near highway exits than in the middle of major cities.