Many people around the country complain about gas that is $4 or more per gallon at the pumps. However, the average price in California is over $5, and in some parts, it is over $6.00.
Someone pump the brakes. The average price for a gallon of regular gasoline is now above $6 in Los Angeles County.And, that’s not even the most expensive in California.The average price rose 2.3 cents to $6.011, according to figures released Tuesday by the AAA and Oil Price Information Service. The overnight surge was the 28th consecutive increase and comes 19 days after prices topped $5 for the first time.
This escalating cost of gasoline and inflation is cutting into the Democrats’ chances for victory in November’s election, even in deep-blue California.
So Gov. Gavin Newsom will fix the problem by throwing more money at it.
Gov. Gavin Newsom announced the details of his gas rebate proposal Wednesday, which includes $400 direct payments for car owners who have vehicles registered in California.The governor made the announcement in a press release Wednesday, estimating the program would cost $11 billion total, with $9 billion of it being used for the rebates.The program would provide the funds through debit cards, and each individual would be eligible to receive up to two payments. For families with more than one vehicle, payments would be capped at two vehicles.
Of course, there is no talk of the state using its oil resources to alleviate the problems. There are no tax reductions to help reduce the burden on citizens. There are simply more bureaucratic rules about who can and can’t get a debit card.
The plan is to send $400 debit cards to vehicles owners for up to two cars. People who own electric or other vehicles that don’t use gasoline would qualify. Most businesses with fleets of vehicles would also not be eligible. Newsom said the rebates alone would cost the state about $9 billion.“That direct relief will address the issue that we are all struggling to address, and that’s the issue of gas prices,” he said.Regular grade gas is a state record-breaking $5.88 per gallon in California, about $2 more than a year ago, according to AAA.
I drive a Honda CRV. It’s hardly a gas-guzzler, but it still cost $65 to fill my tank the other day. By my calculation, that will pay for six tanks of gas…which should get me through the next two months.
But what happens after the debit card is tapped out? Furthermore, by pumping more money like this into the system, inflation will accelerate. It was already at a historic 7.5% in January, a level not seen since 1982.
I am not the only one skeptical of this proposal.
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