California Gas Prices on the Rise
California motorists are feeling the pain at the pump. According to GasBuddy, gas prices in the Golden State are the highest in the nation, averaging over $4 a gallon.
Why Are Gas Prices So High in California?
Gas prices are hitting our wallets hard, and it has to do with California’s high gas tax, thanks to the newly implemented 12-cent a gallon gasoline tax hike. According to Dan McTeague, Senior Petroleum Analyst at GasBuddy, taxes play a huge factor in the gas increase. However, McTeague said gas prices are also affected by supply, meaning we’re not making enough gasoline. He added that the market has to raise rates to get the fuel we need.
Certain Types of Gasoline
It’s more expensive to produce gasoline in California because of the type of fuel that the state uses to meet its standards. California refineries are only allowed to make a specific type of gas and according to McTeague, many refineries are not able to do that.
California limits its type of gas to a specially formulated blend called CARBOB to help improve air quality. This type of gas is too expensive for the majority of outside fuel producers so it is mainly produced inside the state.
Challenges for Refineries
Gas prices also go up if refiners have a difficult time meeting their commitments. If their output is low, they have to pay more, and basically ask others to fill their predetermined gap.
Refineries are also facing seasonal changes and maintenance. Like a vehicle, a refinery has to run well, and that means keeping it maintained at an optimal level. However, refineries that do run well can face other issues such as not producing enough gasoline during a strong demand.
The Future of Gas Prices
The future isn’t looking so bright for California drivers. McTeague predicted that gas prices are going to hold steady for the next week but will likely increase about 10 cents more per gallon between now and next week.
Tips to Save at the Pump
Although you can’t change the prices at the pump, you can make other changes when fueling up. Following these simple steps can help you save a few dollars.
- Visit the Pump on a Specific Day – The best day to fill up is Monday mornings. This is the time when gas stations are slower, and prices are lower. Fridays are the worst day to visit since prices are the highest.
- Check Tire Pressure – Driving on low tire pressure can reduce fuel economy. Be sure to check your tire pressure regularly to meet the recommendation. Many vehicles have recommended tire pressure listed inside their driver’s door or owner’s manual.
- Download a fuel finder app – Having a fuel finder app can help you find the lowest gas prices in town. GasBuddy, Waze and Gas Guru are great apps to use.
- Pay with Cash – Some gas stations charge a fee for using a card. Use cash when you fill up to help avoid paying additional fees and interest rates associated with the card.
- Slow Down – When you speed, you use up more fuel.
Watch YouTube Video: Gas Prices on the Rise; California Sees Largest Jumps. In this KCRA news clip, a fuel expert explains why California sees much higher prices.
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