June 27,2108-
Update: Valley Crude hits $76.06 June 29
Higher WTI crude prices as well as San Joaquin Valley crude cost increases are expected to boost gasoline prices at the pump in California, just time for the July 4 holiday driving season.
As of June 27 Chevron’s Midway Sunset ( San Joaquin Valley) crude is being priced at over $73 a barrel, a high for the month. Gas prices have been declining a few cents in California for the past several weeks. Now it looks like they’ll be heading back up. ( update $75.40 as of 6/28 – high of the year.
Many stations are selling regular for $4 a gallon.
Energy analysts say OPEC’s decision to ramp up oil production in coming weeks did not do enough to satisfy demand forecasts. In addition President Trumps announcement that oil companies shouldn’t buy Iranian crude will limit supply and drive up oil prices.
Nevertheless, the federal Energy Information Agency this week estimated that gasoline prices will remain lower than the May 28 price for the rest of the summer.
Just this week as well a ballot measure to repeal the 12-cent tax per gallon in California will be on the ballot this November.
The measure would take away transportation taxes and fees approved by the Legislature last year under SB1, said to raise $5 billion per year to pay for the state’s roads and bridges.
The ballot measure, if approved will remove a 12 cent per gallon increase in the state’s gas excise tax and the 20 cent per gallon increase on diesel fuel.
Before the increase was in place late last October the average price of gasoline in California was $3.06 per gallon according to the California Energy Commission. After the 12-cent increase was put into effect, pump prices rose and today they average $3.66 a gallon – an increase of 60 cents. That means 80% of the increase at the pump this past 8 months is for fuel company margins and the price of crude, vs any tax increase.
.