Energy
Gas Prices Above $3.50 in Major California Cities
Published:
Last Updated:
The price of a gallon of regular gasoline has risen above $3.50 in every major city in California. It is a harbinger of things to come if oil prices spike above $75. It also may be a measure of how much gas prices can affect the consumer economy.
The average national price of a regular gallon of gas is $2.81, so the prices in some California cities are 30% higher.
California’s three largest cities all have gas prices above $3.60. The price is $3.64 a gallon in San Diego, $3.65 in Los Angeles and $3.71 in San Francisco. Most other areas close to these cities along the West Coast have prices nearly as high. In Santa Barbara, the price is $3.70 and in San Jose it is $3.64. In Orange County, near Los Angeles, the price is $3.62. In total, the price of gas is above $3.50 in 12 large California cities, which make up a majority of the state’s population.
Among the reasons the gas prices in these cities are so high is the gas tax in California is among the highest in the nation at $0.467 a gallon. The state also mandates a level of gas standards for “clear gas,” which is the highest standard among all states.
Regardless of the reason California gas prices are high, they may reach a level at which they undermine consumer spending. This could become worse because a number of experts believe the price in the state will top $4 during the heavy driving season in the summer.
High gas taxes obviously harm the lower and middle-class groups hardest. Gas price increases can add hundreds of dollars to household costs, particularly for people who have to drive long distances to work. These hundreds of dollars, added to the base costs of housing, food and clothing, undermine discretionary spending and virtually kill these households as contributors to gross domestic product beyond their purchase of basic daily needs.
California could be the “canary in a coal mine” for how higher gas prices hit gross domestic product. If the past is any indicator, the damage will be substantial.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
