California’s Gas Prices Increase


Orange County Register

Gas prices at Royal Dutch Shell

Lately, gas prices have been rising rapidly in California, leaving many people wondering why gas prices are increasing. The average cost has been rising since this October for 17 days in a row. Now that people are going back to normal life and cars are returning to the road, the supply is insufficient to meet the demand. One station was even charging $7.59 per gallon for regular unleaded gas, despite the fact that 99.9% of drivers wouldn’t even pay for gasoline that costs more than $5. Though many people are upset about this, some find it as a sign that the economy is coming back

People are still left wondering what the cause of the spike in prices is. The answer would be crude oil costs. The increase in crude oil prices is held responsible for a little bit of over half of the jump in gasoline costs. During October 2020, a barrel of crude was slightly under $35, and a year later, the cost increased by over 140% and seems to soon total up to $85. California also has typically higher gas prices because of environmental fees and taxes. There has also been a gas surcharge that was said to have appeared during 2015, a mystery to both experts and regular motorists. Even Gov. Gavin Newsom requested an analysis from the California Energy Commission in 2019, suggesting that “inappropriate industry practices” were the reason behind high costs, not the state’s surcharges.

Even though there is a bright side, motorists still have the right to be angry. After all, the national average amount per gallon is $3.39, and states like Oklahoma, with a $3.00 average, have very low costs. Although motorists find this situation quite hard to deal with, the only better way of viewing it is seeing it as the economy recovering from the high of the pandemic. This shows the development of the economy from when oil companies were losing considerably large amounts of money from almost nobody going out onto the road, or even outdoors at that.