Get ready for $5 per gallon gasoline – especially if you live in California.
At least, that was the contention of a new WSJ op-ed that claims higher taxes and environmental regulations are both driving up the price of gas.
Author Allysia Finley notes that the average cost at the pump in California is now $4.18 a gallon, pointing out that in 2017, Democrats in the state’s legislature raised a tax on each gallon by 20.8 cents over three years.
California drivers are now paying an astonishing average of 63 cents a gallon in state and local taxes, compared an average of 36.8 cents elsewhere in the country.
The reasoning for the price hike was to repair the state’s infrastructure, but instead the proceeds have been “directed toward projects aimed at reducing greenhouse gas emissions, such as bike lanes and mass transit,” the op-ed notes.
The California Air Resources Board is also responsible for imposing a tax through its cap and trade program, which has added about 14 cents per gallon to the state’s average gas price.
CARB requires that retailers sell “a special extra-clean-burning gasoline blend” which raises the price about another 10 cents per gallon. The Board “assigns carbon-intensity scores to hundreds of fuels” and requires refiners to meet a low score to blend lower-carbon fuels. If they can’t meet the threshold, they are forced to buy carbon credits, which also drives up the price of fuel.
www.zerohedge.com/markets/gas-going-5-gallon-first-california-then-across-country