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Government drives high gas prices
USC study shows $1.638 higher price per gallon
Going to a California gas pump is like heading for a tooth extraction—nothing fun on deck.
A new study from the University of Southern California demonstrated just how much of the nearly $2 price hit is due to state policies—all of it. It’s not gouging by the oil companies—it’s the government officials starting back with former Gov. Arnold Schwarzenegger who signed AB 32 and turned reducing carbon emissions over to the state air board. That started the downfall for California motorists.
The author of the USC paper, Michael A. Mische, noted, “Collectively, the sum of all federal, state and local taxes and fees as well as regulatory-mandated costs, total approximately $1.638 per gallon.”
Ouch.
The paper goes on to state that the average California price for gasoline on my birthday, March 11, was $4.694 a gallon, a ugly 52.35 cents charge per gallon for all formulations more than the national average. Much of the difference is state and local taxes. Remember that when local or county sales taxes are approved by voters, gasoline and diesel are in the mix.
Throw in the air board mandates for renewalable (also unreliable) electrical power flowing through a grid that can barely handle current demands and it’s going to get lots worse with the governor’s requirement for all electric cars in the state. That’s going to take a new much larger charging network with a robust grid (assuming there’s any consumer acceptance).
All in all, a classic case of coastal California elites jamming policies to the rest of us so they can cruise around in their government-subsidized Tesla—Oh, forgot that Tesla is now a dirty world in the Elon Trump/Donald Trump world.
There was a telling line in Publisher Gina Channel Wilcox’s recent oped column about a city employee urging the city to be less transparent with the citizens as the City Council and staff wrestle with how to bring a $10 million structural deficit under control. She noted that the city’s contract with its unionized employees expired March 31.
Two items removed from the potential cut list were reduction in hours for the Firehouse Arts Center and the Pleasanton Senior Center. Heather Tiernan, spokeswoman for the city, told Wilcox, “These reductions are not recommended at this time due to the impact on non-vacant staff positions, as well as the value of these services to vulnerable populations, including youth and seniors.”
The telling point is “non-vacant positions”—saving jobs. That’s a fine goal, but with the majority of the city’s budget is personnel costs, jobs must be carefully evaluated regardless of whether they’re currently filled.
This is the challenge with government in general, one that Musk and his talented DOGE leadership are tackling (check out their interview with Bret Baier from Fox News last week—a talented and accomplished group of executives). Government managers win with higher body counts and bigger budgets.
Private enterprise asks the opposite question: how can we do what we’re doing by spending less and achieving more. That thought isn’t in a government mindset.
Great article – we need to be reminded how much CA’s policies are costing us…. At the same time, I have to laugh at the fact that a USC study was needed to tell us that high CA gas prices are due to CA policies. This has been obvious for years, and even decades. Not just higher taxes, but also our unique gas blends, and generally unfavorable business climate.