Mr. Kim, an office worker who commutes from the Fullerton area to LA’s Koreatown every day, says he is afraid to go to the gas station these days. The price of gasoline, which was well over $6 not long ago, has fallen to $5.40 these days, but it is still a high level for the common people.
Even though the price of gasoline in Southern California has recently fallen, it is still being sold at a price that is almost $2 higher than the national average, and drivers are expressing not only incomprehension but also anger. Many drivers say the California government should investigate whether oil refineries are profiteering.
According to the Automobile Club of Southern California (AAA) and the Oil Price Information Company (OPIS), as of the 27th, the average price of regular self-fueled gasoline in LA County fell for 28 consecutive days, reaching $5.44. The average price in Orange County was found to be $5.26.
However, this is only an average price, and the reality is that most gas stations sell much higher than the average price.
On the other hand, as of today, the national average price of gasoline is $3.52, which is a whopping $1.92 lower than the average price in LA County. Gasoline prices across the country are maintaining a stable price range of around $3.
Gasoline prices in Southern California are also attracting attention due to rapid fluctuations. It is common for prices to rise by more than $1 in a month or two and then fall.
In fact, LA County gasoline prices hit an all-time high of $6.49 just one year ago, on October 5, 2022. In the case of OC, $6.46 recorded on the same day is the highest price ever.
Mr. Kim said, “No matter how expensive the cost of living in Southern California is compared to other states, I cannot understand why it is so much higher and different from the national average. I must commute more than 60 miles round trip every day, but the prices are still high and the burden of spending on gasoline is high.” He complained.
The reason that the price of gasoline in Southern California is so high is that the wholesale price of gasoline in Southern California is higher than the national average, and various taxes imposed by the California government on gasoline are the highest in the country. According to the New York Times, the tax levied by the California government on gasoline sales is 51 cents per gallon, the highest among the 50 states. In addition, supply instability factors remain due to frequent maintenance and repairs by oil refineries in the Carson area, which are major suppliers. In addition, if supply instability occurs, such as the ongoing war between Israel and Hamas intensifying and international oil prices soaring, the price of gasoline in Southern California may rise sharply again.
Fortunately, as winter approached, demand decreased compared to summer, and a large influx of winter blended gasoline from California resulted in a price reduction effect.
Drivers, including Koreans, are trying their best to reduce gas costs by reducing unnecessary driving, using car rides to and from work, or finding cheap gas stations through smartphone apps. There is also an ironic situation where people don’t mind driving 10 to 20 miles while wasting gasoline to find a cheaper gas station.
Meanwhile, rising gasoline prices are the area of greatest concern not only to Southern California but also to consumers nationwide. According to a recent survey of 4,420 Americans conducted by Yahoo Finance and Morning Consultants, 63% said they were most worried about rising gasoline prices.