Thursday, January 1, 2015
Welcome to 2015 and NEW GAS TAXES at the pump.
As you know, California drivers have been experiencing an early gift this season in the form of lower fuel prices. With average fuel prices in California down approximately 85 cents per gallon from a year ago, it has been a little easier for families to balance their holiday budgets or travel to see relatives. The boom in U.S. oil production - including right here in California - has played an important role in lowering prices at the pump.
Unfortunately, a portion of this relief will be short-lived. That's because California's "hidden gas tax" will likely hit drivers next month when gas and diesel are placed in the state's "cap-and-trade" carbon trading program. Despite calls from more than 115,000 Californians for the Air Resources Board to delay or modify this program, it now appears certain that this policy will hit drivers next month.
That's the bad news.
The good news is California drivers rallied this year and successfully engaged state government officials in a long-overdue debate over bringing fuels into the cap-and-trade program.
Thanks to your efforts, the Air Resources Board has at least acknowledged that the price of fuel will increase when the "hidden gas tax" takes effect.