CA Gas Tax Holiday Fails As Prices Inch Up

SACRAMENTO, CA — Republican legislators failed to garner enough votes Monday to trigger an immediate gas tax holiday in California, where pain at the pump was being felt more than in any other state.

Assemblymember Kevin Kiley (R-Rocklin) introduced the gas tax holiday measure, but both houses of the Legislature rejected it.

"To cut the state gas tax in its entirety, that'll save Californians 51 cents a gallon," Kiley said, according to ABC10. "Now that's not going to bring gas prices down to reasonable levels by any stretch of the imagination. But it'll help."

The measure would have eliminated about 51 cents per gallon in gasoline excise taxes for six months. Republicans needed 54 votes in the Assembly but got only 18 on Monday.

The state's gas tax increased in 2017 under Senate Bill 1; the tax was used to cover roads and infrastructure costs, The Sacramento Bee reported.

Gov. Gavin Newsom previously proposed a gas tax holiday that would suspend an annual gas tax increase in July. This month, he also introduced the idea of a gas tax rebate, which he said could help "put money back in Californians' pockets to address rising gas prices." But sparse details have been offered on that plan, and it's likely that taxpayers won't see those dollars for a while.

No Democrats supported the GOP gas tax holiday on Monday, but many support Newsom's proposed rebate.

Meanwhile, in Connecticut, Gov. Ned Lamont proposed Monday to suspend a 25 cents per gallon excise tax.

"He's suspending his state’s gas tax right after Newsom said my bill to do that would 'line the pockets of petro-dictatorship and oil companies,'" Kiley tweeted on Tuesday.

On Tuesday, the price for regular gas crept up to $5.75 per gallon, a modest increase compared with the 8 to 13 cent surge the state saw daily last week, AAA reported. One year ago, regular gas cost $3.84 per gallon.

The average price of gas across the state rose 40 cents over the past week — from $5.343 per gallon to $5.74 — and 64 cents over a month, AAA reported.

Nationwide, the average regular gas prices rose to $4.31 per gallon, up from $2.86 per gallon last year. Oil is currently at its highest price since July 2008, NBC Los Angeles reported.

The surge, aggravated by Russia's invasion of Ukraine, was expected to ease up as the price of crude oil gradually fell. The price of oil crested at $123 per barrel shortly after the war erupted, but it fell below $110 on Monday.

"It bears reminding that the cost of oil accounts for about 50 percent of what drivers pay at the pump," said Andrew Gross, AAA spokesperson. "This war is roiling an already tight global oil market and making it hard to determine if we are near a peak for pump prices or if they keep grinding higher. It all depends on the direction of oil prices."

California drivers were able to find some relief at the pump by frequenting gas stations at membership retailers such as Sam's Club, Costco or BJ's Wholesale Club, where prices can be dramatically cheaper.

For example, pumps near the Beverly Center in Los Angeles charged a whopping $6.65 for regular gas on Friday. But at Sam's Club in Arcadia, drivers paid only $4.29.

READ MORE: Is CA Gas Cheaper At Costco And Sam's Club?

What's more, the price California residents paid to take a ride or order food through Uber and Lyft also went up.

To offset rising gas prices for California Uber drivers, the ride-sharing and food-delivery company said it will impose a temporary surcharge on customers, starting Wednesday.

"We've been closely monitoring rising gas prices and their impact on our driver community," Lyft spokesperson C.J. Macklin said in a statement. "Driver earnings overall remain elevated compared to last year, but given the rapid rise in gas prices we'll be asking riders to pay a temporary fuel surcharge, all of which will go to drivers. We'll share more details shortly."

READ MORE: Uber To Raise Fees In California To Offset High Gas Prices

Prices were expected to level off this week and have already been showing signs of slowing their ascent.

While the small increases don't necessary signal to an end to rising costs, relief could be in sight, according to GasBuddy's Patrick De Haan.

"RELIEF? For now, average #gasprices should start slowing noticeably over the next 2-4 days-they may stabilize, and some areas may see small drops. But the situation remains fluid, so it could change quickly. But good news," De Haan tweeted on Friday.

As prices remain elevated in California, motorists could soon start turning to public transportation to avoid pain at the pump, according to media reports.

Alicia Trost, a Bay Area Rapid Transit spokesperson, told The Mercury News that she's seen a 15 to 20 percent surge in riders in San Francisco at the Embarcadero and Montgomery stations in downtown.

"You couldn't time historic high gas prices and offices reopening any better for transit recovery," she told the newspaper. "It's a pivotal moment."