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California has the most expensive average gas prices in the nation
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and a new study suggests that state policies, rather than price gouging, are the primary driver of this
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According to a recent study from a professor at the University of Southern California's Marshall School of Business
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these higher gas prices are largely the result of taxes, fees, and regulations imposed by the state and local governments
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The study found that the total cost of these added expenses amounts to approximately $1.64 per gallon
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contributing significantly to the state's current average gas price of about $4.81 per gallon
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nearly $2 more than the national average of $3.01. These findings contradict claims from state leaders, including Governor Gavin Newsom
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who have previously alleged price gouging by oil companies is the main culprit for increased costs at the pump
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However, the study's author, Michael Michet, contends California's gas price problem is largely self-inflicted
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and there is no evidence the state's refiners have engaged in widespread price gouging
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Meanwhile, other industry experts argue California's stringent regulatory environment has driven many refineries out of the state
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exacerbating supply shortages and increasing costs for consumers. And then there's the state's cap and trade program
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which adds compliance costs for refiners, which are then passed on to consumers
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California also imposes the highest gas tax in the nation, currently at 59.7 cents per gallon and rising annually with inflation
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Ultimately, the study warns California gas prices will likely continue to go up
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and the results for consumers could be, quote, painful. For Straight Arrow News, I'm Jack Elmer
