Skip to comments.California gasoline prices set to plunge as spike ends
Posted on 10/09/2012 7:45:45 AM PDT by chessplayer
(Reuters) - The unprecedented price spike that added more than 50 cents a gallon to California pump prices last week ended as quickly as it began, market analysts said, and consumers should see prices fall dramatically in the coming week.
(Excerpt) Read more at reuters.com ...
When have you ever seen a headline like this. LOL
Indications elsewhere are another record was set today. We’ll see.
I’m sure that prices suddenly falling just before the election is just a coincidence. sarc/
And now, the weather. Warm weather set to end as temperatures drop.
Jerry Brown and those Greenie CA liberals put GAS prices (before an election) ahead of the environment? This is hard to believe. What about our planet? Isnt it getting warmer, err colder, err more hurricanes, more snowstorms, ?? Any weather we hate?
Wont half the country be under Ocean water in a few years? just for a 60 cents or so per gallon? Oh the shame.
Yep... skittles and Unicorns are just around the corner.
“Im sure that prices suddenly falling just before the election is just a coincidence. sarc/’
Dun’t Matta’ ‘cause I be voten’ fo’ Obama any way!
California is switing to “winter blend” about 3 weeks early.
if Obama tries to”play” this, Romney can rip his head clear
Yesterday Di Fi was calling for an investigation.
They always strategically do this whenever prices peak. So that when they start falling they can claim credit. “We called out those Eeeeeeevil oil jerks. When we started investigating they knew the jig was up!”
The simplest way to get gas prices to drop at the pump is to suspend the federal tax on each and every gallon sold. We all know that the feds make way more money on gas than the oil companies do, just like the feds make more money off cigarettes than the tobacco companies do.
When it comes to greed, no one beats the feds.
I am a big fan of Ed Wallace. He explained Saturday why there was gas shortage in Ca.
where? you just dumped us onto his site.
The special blends in California probably do get sold on the premise that they’re better for the environment, but the important goal is to burn cleaner during the warmer months of the year, thus reducing smog.
A lot of progress has been made in reducing visible smog. The AQMD smog alert days have been reduced significantly. That’s not to say there isn’t still a problem, because there is, but it’s a lot better than it used to be.
In the early 70s, I worked on Foothill in La Canada, California. I remember looking across the street in those days, and we’re talking 50 or 60 yards, and being able to see smog between myself and the buildings across the wide street.
I haven’t seen days like that in over two decades.
I’m no enviro weenie, but the inversion layer around L. A. can form a thermal trap that can and has caused the air to be very unhealthy. Something had to be done, and the special blends did seem to have a great impact.
The federal tax on gasoline is 18.4¢/gallon.
The state taxes add up to 51.3¢/gallon as of Oct 1st, 2012.
Gasoline & Diesel Motor Fuel Taxes
All states shown at link
Plus the sales tax not only is on the price of gasoline, but on the other taxes already added in. Highly illegal.
Actually, that was inclusive of the sale tax applied to gasoline in California.
The Gasoline Sales Tax was revised to 2.25% not long ago.
GasBuddy.com shows the excise tax to be 35.3¢/gal and other taxes to equal 15.2¢/gal to include sales tax. Other Taxes columns include a 2.25% state sales tax for gasoline and at least a 1.25% local sales tax for various counties in the state for diesel. The tax rate applied is a weighted average based upon county populations. A 2 cpg state UST fee is also included.
Because of the percentage basis of California's gasoline taxes, there is some variation between sources depending on the date they calculated the tax.
Further breakdown by week of California Gasoline Taxes can be found here:
Hmmm, I always thought the sales tax charged here in Calif was the full State amount, 7.5 or so. Seems it is less than that.
So are they starting early with the winter fuel, and do you think that will lower the price at the pump.
My SUV is on empty, and I want to wait too put any gas in so I can save some money.
I heard today that Calif adds 62 cents of sales and road tax to every gallon...
According to this page, it changed to 2.25% effective July 2010, not that long ago. Other related changes since 1990 also listed.
Other related changes since 1990 also listed.
California statewide sales tax is 7.25%...looks like a typo on the graphic. California charges this sales tax on the total with Federal & other CA taxes...so they are “taxing a tax”! Also, there are county/city “add-ons” to the sales tax, Fresno Co. (home of FR) has a sales tax rate of 7.975%.
I hope prices drop soon. We're here on a month's vacation in our motorhome. We might have to cash in an IRA to buy enough gas for the Winnebago to get us to the Arizona border.
After reading more, it is more complicated...due to something called the “Fuel Tax Swap”...you pay 2.25% of sales tax at the pump, but an additional 5% is built into the “state excise tax”?? I need a lawyer to decipher it!!
Additionally, beginning July 1, 2011, the state excise tax on motor vehicle fuel increased by .4 cents ($0.004) per gallon. Therefore from July 1, 2011, to June 30, 2012, the state motor vehicle fuel excise tax is 35.7 cents ($0.357) per gallon. Aviation gasoline will continue to be subject to the original state motor vehicle fuel excise tax of 18 cents ($0.18) per gallon and remains exempt from sales and use tax.”
Suffice it to say that we are paying a cr**load of state taxes (at least 35.7 cents) on auto fuel...plus Federal taxes of course!
California also has a special sales tax rate of 2.25% on motor gasoline.
What is the Fuel Tax Swap?
The Fuel Tax Swap provides for a combination of lowering the sales and use tax rate applicable to sales of motor vehicle fuel, excluding aviation gasoline, and simultaneously raising the state excise motor vehicle fuel tax, effective July 1, 2010.
Additionally, the Fuel Tax Swap raises the sales tax rate applicable to sales of diesel fuel and simultaneously lowers the state excise tax on diesel fuel, effective July 1, 2011.
The BOE is required to adjust the excise tax rates for both motor vehicle fuel and diesel fuel annually so that the total amount of tax revenue generated is equal to what would have been generated had the sales and use tax and excise tax rates remained unchanged.