Inflation and an unrelenting epidemic may provide some comfort at the gas pump this summer for Fremont residents. The state’s summer gas tax hike may not take effect, according to Gov. Gavin Newsom’s budget proposal.
On Monday, Newsom released his budget plan, which included a $523 million gas tax break.
Newsom told reporters, “We’re going to backfill it in terms of the tax itself to transportation projects so that there’s no direct impact on investments.”
Californians were likely to be hit by an increase in gasoline prices due to inflation in July.
California’s gas tax raised by 51.1 cents on July 1 last year. According to KTLA, a study conducted by Stillwater Associates last year indicated that Golden State residents paid roughly $1.18 per gallon in taxes and fees.
Not only is California the most populous state, but it is also one of the most costly to live in. No one feels this more than Fremont motorists, who continue to pay the highest gas prices in the country.
“Oil prices are rising again due to civil instability in a handful of oil-producing countries,” said Jeffrey Spring, a spokesperson for the Automobile Club of Southern California, “but that impact appears to be muted by concerns about what the Omicron variation of Covid may do to gasoline demand.”
According to AAA on Wednesday, average regular gasoline prices in California rose to $4.65 per gallon in January, barely 10 cents less than the highest recorded average price of $4.71 on Nov. 27, 2021.
According to AAA on Wednesday, the average price of normal petrol in Alameda County was $4.73 this week.
According to AAA, the national average price was $3.30 on Wednesday.
“Southern California drivers began the new year paying the highest average price in the region for January, with the statewide average today being 30% higher than a year ago, when it was $3.26 per gallon,” Spring said on Thursday.
While most Californians experience petrol costs that are uncomfortably close to $5, one gas station along a renowned stretch of state Route 1 through Big Sur may have the nation’s most expensive fuel price: a station in Gorda charged $7.59 per gallon.
California’s gas prices are alarmingly high, with analysts blaming the growing price at the pump on strong oil demand, poor supply, and the rising cost of oil.
“What’s been driving up prices is the market imbalance,” Patrick De Haan, GasBuddy’s head of petroleum analysis, previously told SFGate. “Supply is still 10-15% below pre-Covid levels, while demand has returned to pre-Covid levels and has reached all-time highs at times this summer.”
AAA has some suggestions for getting improved gas mileage.
Starts that are “jack rabbit” in nature, fast acceleration, and harsh braking should all be avoided. These measures can reduce fuel efficiency by 15 to 30%.
Idle time should be limited. When an automobile engine is idling, it consumes about a quarter to half gallon of fuel each hour.
Avoid commuting at rush hour, when traffic is at its peak.
To maintain momentum and prevent stop-and-go driving, time stoplights.
Make use of the cruise control.
Instead of idling, drive to warm the engine.
On toll roads, use a prepaid quick pass.
Shift gears efficiently by upshifting as soon as possible for manual drivers. Instead of downshifting, utilize the brakes to come to a stop.
Keep an eye on your speed. Most automobiles’ fuel economy peaks around 50 mph. According to AAA, reducing highway speeds by 5 to 10 mph can improve fuel economy by 7 to 14 percent.
Throughout the holiday season, Californians were befuddled by rising gas, food, and rent prices.
Last month, inflation hit its highest level in over 40 years, with a 7% increase from a year ago. This boosted household spending and eroded wage growth, putting pressure on President Joe Biden and the Federal Reserve to confront what has become the country’s largest challenge.
Prices for vehicles, gas, food, and furniture climbed dramatically in California as part of a quick recovery from the pandemic recession, which was spurred by massive government help and emergency Fed intervention, which lowered interest rates. Supply networks were strained as Americans increased their expenditure due to labor and raw material shortages.
The consumer price index, which excludes volatile food and gas costs, increased by 5.5 percent in December, the highest gain since 1991, according to the Labor Department. In November, the CPI increased by 0.5 percent, down from 0.8 percent the prior month.
With the state’s revenues at an all-time high, Newsom suggested a budget that would reduce taxes to offset inflationary consequences.
Newsom stated, “We have the capacity to invest in our development engines, invest in the future, and ensure that we are prepared for the risks that the future provides.”