The average gas price in Los Angeles is increasing again. This time, the cost increased by 2.3 cents to $6.011. The price has risen 37.2 cents in the last twenty days. The recent increase in the price of crude oil accounts for more than half of the overall price increase. Fuel shortages could rival the crisis of the 1970s. The latest data shows that more than half of the cost of gasoline in California is accounted for by crude oil.
Average gas price in los angeles increases by 2.3 cents to $6.011
In Orange County, the average gas price jumped by 2.3 cents, pushing the price of a gallon of regular gasoline up to a record high. This is the longest streak of rising gas prices in the county. In fact, the price of gasoline in the county has increased by 1.185 dollars in the past year. The increase in price came as the price of crude oil remains above $100 a barrel.
Higher gasoline prices in California are due in part to the war in Ukraine, which has cut off Russia’s oil supply. These issues have reached ports and are being passed along to consumers. At the same time, a higher cost of living in California means gas prices are higher than elsewhere. On top of this, California has a higher tax rate than other states, making it more expensive to purchase fuel. To curb American demand, gas prices would need to rise by a significant amount.
Average price has risen by 37.2 cents in the last 20 days
The average price of a gallon of self-serve gasoline in Los Angeles County has risen by nearly 37.5 cents over the past 20 days. The price has risen $37.1 cents in the past week, 35.4 cents in the last month, and a whopping 84.5 cents in the last year. Rising oil prices and a shortage of local gasoline are two of the primary reasons for the high price.
The increase in prices is partly due to increased demand for gasoline during the July 4 holiday, and it could happen again over Memorial Day weekend. In addition, California’s strict environmental laws require refiners to use a specific gasoline blend for the state. There are few suppliers of California’s unique blend and the market is limited in its ability to import fuel from other regions. The price increases are also reflected in higher taxes.
Crude oil prices account for more than half of overall gas prices
As oil prices continue to rise, the impact of higher crude prices will be felt most by lower-income households. The bottom forty percent of earners will quickly blow through their savings. In fact, according to Vice President Biden, oil prices over $130 per barrel cause “demand destruction,” causing consumers to stick to the essentials like gas and food. Refineries are already experiencing lower demand, which means that they are unable to process more crude oil.
The rise in gas prices is primarily due to the recovery from the pandemic that hit the United States. Meanwhile, oil prices were climbing on hopes that China would ease restrictions on oil exports, but that was tempered this week as the country went back on alert. The cost of diesel fuel is also rising at a rapid clip, with retail diesel prices at an all-time high of $5.57 per gallon, or 76% higher than a year ago. Almost half of all household gas bills are fuel-related, and while the price of fuel is still high in Los Angeles, it is much cheaper to travel in other parts of the country than to fly abroad.
Fuel shortages could rival the 1970s gas crisis
There are countless parallels between the current shortage of gasoline and the gas shortages of the 1970s. The 1970s gas shortage was a low-tech one, with geopolitics, OPEC and the Iranian Revolution to blame. However, the effects of the 1970s energy crisis on the Earth’s climate were far greater than the current crisis. Carbon emissions from the U.S. rose 4.1 percent annually before the crisis began, but have dropped just 0.2 percent over the past four years. So, if a modern day equivalent of the 1970s gas shortage has occurred, perhaps it will encourage us to move away from our dependence on fossil fuels.
During the 1973 oil crisis, the embargo was imposed by Arab oil producers on the U.S. as part of their support for Israel. This had a knock-on effect on the price of gas in the United States. While the embargo was largely ignored, it played a significant role in Nixon’s downfall. Despite the infamous “Saturday Night Massacre” incident, internal polling found that the 1973 gas crisis was the greatest threat to the president’s popularity. In response to the embargo, Jimmy Carter ran for office with a promise of honesty and created a Department of Energy, with the aim of cutting dependence on foreign oil. But he failed to deliver on that promise and chasmmed American consumers for the rest of their consumption.