Are gas prices increasing because of the gasoline tax? | Check

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A gasoline tax increase went into effect on July 1, but it was only about half a cent. Experts say there are other issues that cause the price to rise more noticeably.

SACRAMENTO, Calif. It’s no secret that we all experience pain at the pumps after the 4th of July weekend. Gas prices in California are at their highest since 2014.

But lately we’ve heard many viewers commenting on photos of high gasoline prices on social media across the region, blaming it on the California gas tax.

Nancy, a commentator on Facebook said, just too much to accept, such a high road tax is the reason.

Bob, another commentator, also stepped in on this post to say, say it. Gasoline taxes increased on July 1. Politicians can’t get enough money, so they tax you for it. “

Is California’s Gasoline Tax Really Responsible for Soaring Gasoline Prices This Summer?

California Energy Commission Dr Sanjay Varshey, Sacramento Professor of Finance, Patrick De Haan, Petroleum Analysis Manager for GasbuddyDr. Colin Murphy, Deputy Director of UC Davis Policy Institute for Energy, Environment and the Economy

No, the California gasoline tax is not to blame for soaring gas prices this summer. It increased on July 1, but only about half a cent per gallon.

“In short, no, it’s not. The increase in the gasoline tax this year is just to keep up with inflation, and the impact is about half a cent, a little more. half a cent per gallon, ”Murphy said.

Murphy said that while the gasoline tax increased on July 1, something voters approved and enacted in 2017 under Governor Brown’s administration, it only increased by about half a year. penny per gallon.

He said there were other issues that caused the price to rise more noticeably, starting with supply and demand.

“The US appetite for gasoline has increased. The problem? Well, oil production is lagging behind,” De Haan said.

The California Energy Commission told ABC10 in an emailed statement: Rising crude oil prices are the reason gasoline prices are on the rise in the United States and California (no more taxes. high), increasing by about $ 4 a barrel ($ 69 to $ 73) or about 9.6 cents gallon “based on figures from the Oil Price Information Service.

“The demand has really exploded. In fact, the supply has remained static or has declined because, if you look at last year, for the first time since 2014, we saw oil prices plummet,” he said. Varshey said.

Murphy said gas makers are switching to a summer gas blend every year, which can result in increases of 10 to 15 cents per gallon.

“You have to change the formulation of the gas to make it a little less likely to contribute to ground-level ozone, which is a pollutant that causes many respiratory problems. It can damage crops,” he said.

It’s not just California either.

“I think we have almost a perfect storm when it comes to the oil industry and oil prices because the Keystone pipeline has been shut down and drilling on federal lands for oil has been banned,” Varshey said.

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