While holding the Crown for 'Highest Gas Prices in the Country' California is set to Raise their Gas Tax
However, it would eventually be saving drivers roughly $0.03/gal according to Newsom's office...
The state of California’s lawmakers had considered a pause on the annual summer increase for the state’s gasoline tax. Governor Gavin Newson was one of the prominent vocal leaders in support of helping motorists experiencing the struggles at the pump and pushing back the 5.6% tax hike scheduled to take effect on July 1st. According to the state’s analysts, the tax will generate roughly $8.8 Billion in revenue during the fiscal year 2021-2022.
The only obstacle for lawmakers is they must pass legislation by Sunday to implement a stoppage of the gas tax increase from taking place. They have yet to introduce a bill concerning the matter, so the outlook is grim.
"It is clear now that the Legislature will not act in time to provide that immediate, limited relief, but we look forward to working with lawmakers on the Governor’s proposal for direct payments to Californians wrestling with rising prices."
Alex Stack, Newsom’s spokesperson, said.
A gallon of regular gas hit $4.13 yesterday according to AAA which is up from just $2.88 a year ago. The typical case of California experiencing the highest prices stood true as in some parts of the state gas hit $5.68. If you think that’s shitty, in Mono County, an average price of $6.61 per gallon has been recorded.
The state already has the nation’s highest tax on gas at $0.51/gal. The new taxation will raise that to $0.54/gal at the beginning of July. However, it would eventually be saving drivers roughly $0.03/gal. The governor’s office has also speculated a rebate that would go towards residents with cars that are registered within California.
The Republicans of California had recommended a bill earlier this year which would suspend the gas tax immediately. The bill was introduced due to the rising prices and some backfill projects from California’s $45 Billion surplus. The proposal failed with not enough votes just two months later in March.
The culprit for such rises in gas prices is the economic recovery happening at a pace nobody expected. The faster-than-expected economic recovery across the country has led to rising inflation, an absurd amount of government stimulus checks, and disruptions in supply chains across the globe.
With an already existing array of issues, the war in Ukraine has also played a role in global prices. Oil has dipped just below $100/barrel on Monday but gas prices remained high as we aren’t sure oil prices will stay below that mark.