Gas prices falling down, despite California gas tax taking effect this month
MONTEREY COUNTY, Calif (KION-TV)- Despite gas prices reaching record highs a few months ago and California's gas tax taking effect, prices are plummeting.
According to AAA, the national average for a gallon of gas fell 15 cents since last week to $4.52.
Data from the Energy Information Administration shows the demand dropped from 9.41 million b/d to 8.06 million last week. However, domestic gas stocks increased by 5.9 million bbl.
AAA states the decrease in demand and declining oil prices have helped push pump prices down.
KION asked several people on the Central Coast if they've noticed a difference.
"You can notice the big difference a whole lot," said Yolanda Rodriquez of Salinas. "I mean, it was ridiculous when it was kind of high, and it was making it difficult for us."
The plunging prices are a relief.
"Every cent, you know, it doesn't matter if it's just one, two, or three cents," said Rodriquez. "It makes a big difference in each gallon."
But for, some, like Stephanie Barbosa, she hasn't felt the difference. Barbosa commutes from Gonzales to Salinas.
"I work here in Salinas," said Barbosa. "I come about three, four times a week. I usually pump in the same place, and it's usually the same amount of money."
AAA reports that the national average gallon of gas dropped by 15 cents last week. But experts said it's still too soon to be optimistic.
"We should enjoy the little bit of respite," said Professor Brad Barbeau, an economics professor at CSU Monterey Bay. "I don't see any reason why they should shoot up a lot higher than they are now. But I also don't expect that this is the beginning of a strong trend downward."
The ongoing Russia-Ukraine war is still impacting oil and gas prices. So why does oil fall faster than gas?
"If the price of oil goes up or the price of gasoline to them goes up, they've got to respond quickly to raise those prices," said Barbeau. "If the oil prices moderate a little bit, it gives them a chance to catch their breath."
Western States Petroleum Association said while prices are decreasing, there's still more that can be done to help people out.
"California is an incredibly oil-rich state," said Kara Greene, a spokesperson with the Western States Petroleum Association. "We have the capabilities here and we have the permits to drill just sitting on the administration's desk waiting to be signed."
