A new levy could drive gas prices up

The low gas prices we have seen across the country and on the Central Coast may soon be inching back up.

2015 brings a new state levy on refineries that could be felt at the pumps.

For now, drivers are taking advantage of the lower prices. Watching the price of gas drop has been a gift for drivers recently.

Gas prices are at a five-year low, igniting new trends.

Andrew Harris said, “There’s been times when I drive until pay day, on orange, and I’m just hoping to make it to work and what not, and actually it’s really nice right now.”

The wait at Safeway’s gas station is proof more people are filling up more often.

Jason Hough said, “There’s trips we’ve been taking just because we can. Road trips, that sort of thing. It’s not as expensive.” Hough says money saved at the pump is more money for play.

But like most, he figures prices will go back up.

Add to that New Year’s cap and trade surcharge for oil companies.

Nine years ago, voters passed California’s Global Warming Solutions Act of 2006 under Governor Arnold Schwartznegger as a way to offset greenhouse gas emissions. Gas and diesel industries will be fined it they don’t adhere to current carbon pollution standards.

Vice President of Salinas Valley Ford Lincoln, Lars Frieberg, said, “Most people have forgotten about it, and it’s easy to vote for something if it doesn’t cost you something. The oil companies are not going to want to make less money. Eventually, a lot of those costs will be passed onto the consumer”

He said he saw sales for SUVs and truck go up in December and he attributes that to low prices at the pump, “When fuel prices go way up, hybrid sales go way up. When fuel prices go down, bug truck sales go up.”

The price of gas is hard to predict with numerous factors.

Frieberg added, “I think people are getting tired of this and saying, ‘I’m just going to get a good, modern, vehicle and be done with it.”

However, when the price is right, people are happy.

The goal of the California Global Warming Solutions Act of 2006 was to reduce greenhouse gas emissions to 1990 levels by 2020.

Experts predict the increase at the pump will be about 10 cents more per gallon.