[cnxvideo id=”655424″ placement=”ros”]As oil prices continue to rise, and forecasters say gas prices will rise by as much as $.30 a gallon in 2017, the price of a gallon of regular has already come close to $3 in several of California’s largest cities.
AAA recently reported how quickly gas prices have risen recently:
The New Year began with increased gas prices reaching today’s average of $2.34 per gallon. The national average has moved higher for 34 of the past 35 days, largely due to market reactions to last fall’s OPEC deal. Pump prices increased by five cents on the week, by 18 cents per gallon on the month, and are up by 34 cents on the year.
The new OPEC deals calls for a cap on production, which, if demand moves higher in what appears to be a stronger global economy this year, simple supply and demand should affect gas prices
According to GasBuddy, the price of gas in San Francisco has reached $2.92. In Santa Barbara, it is $2.89. In LA the figure is $2.87. In Orange Country, at $2.87. In San Diego, $2.84. In another five large California cities, the figure is above $2.80
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There are two primary reasons California prices are so high. One is its high gas taxes and levies. The other is that its laws mandate the gasoline which belches out of cars has fewer polluting emissions than in other states. California is in the midst of getting producers to make “reformulated gas”, a process which requires special efforts by refineries
Among all the states, California has the 7th highest gas and levies, at $.5659, against a national average of $.4886 according to the American Petroleum Institute. Only Pennsylvania, Washington, Hawaii, New Jersey, New York, and Connecticut are higher.
Based on the items which push up California gas prices, drivers in its largest cities are likely to pay over $3 soon.
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