A series of taxes and fees piled on top of the price of California gas are set to cost morethan the fuel itself, a top oil industry group revealedThe US Oil & Gas Associationshared a chartshowing a detailed breakdown of the factors that make the price of gas in the Golden State the highest in the US.
The news comes as the average price of a gallon of regular gas in California surged to $4.905 on Friday, well above the national average of $3.32,according to American Automobile Association.
Drivers pay a “California premium” loaded with higher than average state excise and sales taxes, as well hefty fees for climate programs unique to the state.
The state also requires an eco-friendlymore costly fuel blenddesigned to prevent pollution.
“There are six different taxes or fees on each gallon. By contrast, the federal tax is eighteen cents,” Tim Stewart, president of the US Oil and Gas Association, told The California Post. “So California’s taxes and fees are 10 times those of the federal government’s tax.”
Get the perfect blend of news, sports and entertainment delivered to your inbox every day.
On Tuesday oil giant Chevronwarned in a doomsday letter to Gov. Gavin Newsomthat California will face economic collapse under his “misguided” climate policies.
State lawmakers also warned that Newsom’s green agenda risks sending the price of gas above $8 a gallon — potentially returning drivers to fuel rationing not seen since the 1970s.
The California Air Resources Board (CARB) also recently approved amendments to the state’s cap-and-invest program — which charges oil makers for carbon emissions — by placing a strict limit on greenhouse emissions that will decrease every year.
Chevron has warned that CARB’s plan could add another $1.21 a gallon to California gas prices.
Source: California Post – Breaking California News, Photos & Videos
