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California’s gasoline taxes are going up again Saturday.
That means there’s little hope that the price at the pump, already more than $1.25 above the national average, will come down soon.
There is a possibility the per-gallon price will drop 10 to 25 cents by Labor Day, said Patrick De Haan, head of petroleum analysis at GasBuddy, as supplies increase.
But prices drop only “if nothing happens” that would tighten supply. And stuff often happens. Refineries can shut down for various reasons. Demand spikes. Bad weather affects infrastructure.
De Haan was less concerned about the overall impact on prices of the increase in the state gasoline tax, which goes up 4 cents a gallon to 57.9 cents on Saturday. That’s nearly double the state gasoline tax rate nationwide, which is about 30 cents, the nonpartisan Tax Policy Center found.
The increase is an inflation adjustment required each summer under 2017 legislation that helps pay for road construction and maintenance.
Two-thirds of the money from the gasoline and diesel fuels tax goes to state highway programs, while the rest goes to cities and counties to help with local street and road maintenance and construction.
Republicans in the California Assembly tried to delay the tax increase for a year but the effort failed Tuesday.
GOP lawmakers warned that the higher gasoline prices will rippled through the economy.
“Pushing the gas tax even higher means families will have fewer opportunities and less food on their table,” said Assemblywoman Laurie Davies, R-Laguna Niguel, who pushed the amendment for the delay. “That is not the California I want to live in”
As of Wednesday, the price of a gallon of regular gasoline in California averaged $4.83, according to AAA.
In Sacramento, the average was $4.73. Other averages Wednesday in metropolitan areas: Fresno, $4.77; Modesto, $4.63; Merced, $4.75, San Luis Obispo, $5.12.
The national average Wednesday was $3.56.
Click here to read the full article in the Sacramento Be VIA Yahoo News
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Taxes going up AGAIN in the Peoples’ Republic. What a surprise.