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California about to break all-time high gasoline price

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Updated  October 4, 2022 5:47pm PDT
California
KTVU FOX 2

Supply and demand is not the only reason gas prices are spiking

California gas prices are sky high, at nearly $2.60 over the national average. Many Californians say they're not happy about the price spike. A UC Berkeley expert says thee is no expiation for why Californians gas is more expensive.

OAKLAND, Calif. - A lot of California gasoline customers are feeling like they're running on empty when they look at their wallets.

"I just buy enough to get to work and go home and so, I don't want to buy. I don't plan anything because the price of gas is so high," said customer Bill Norman. "How fast can I switch to an electric car? That's what I think about" said customer James Yu.

Tuesday's average price for a gallon of regular gasoline in California, is $6.41, up three cents from Monday. So, the Golden State is now less than three cents a gallon its all-time high, $6.43 a gallon reach last June 14. And, the $6.41 state average is a whopping, eye-popping $2.60 a gallon higher than the national average. That’s an extra 68% punch to the pocketbook.  

In the Bay Area, gas prices are already 11 cents a gallon more than the current state average. "That's always bothered me. Why does California have to pay so much more for gas?" said Yu. Certain things, like our generally higher cost of living as well as our more expensive cleaner burning fuel so make gas prices higher here, But, there's a lot of money in those prices that simply cannot be explained away rationally. 

UC Berkeley Haas Energy Institute economist Severin Borenstein call it California's mystery gas surcharge. "This long-term, inflated price. That we have in California for which nobody has an explanation," said Professor Borenstein.

SEE ALSO: Pain at the pump: Bay Area gas prices inch toward record highs

It's real and it needs to be investigated. "That is happening somewhere in the retail/distribution and marketing and retailing sector, but it's not clear where," said Borenstein. 

The governor calls petroleum producers and refineries "greedy oil companies" fleecing Californians should be forced to pay an excessive profit tax to be rebated to consumers. The wealthy corporations not really caring what's happening in our society. This is a break-down in American society," said customer Steven Friedkin.

A little relief: the Newsom administration will start sending out the first state "gas" stimulus checks of $200 to 1,050 on Friday.