“Anything that can go wrong will go wrong” – Murphy’s Law

By Mary O’KEEFE

COVID-19 is having a bit of a comeback though the number of infections and the number of hospitalizations and deaths are certainly not what we have seen in the past two years. Californians were ready to go back to work, out to eat, to the movies and theaters … ready for a post-pandemic sort of normal life.

Getting ready to leave the house meant wearing real clothes – not just those that can be seen from a Zoom monitor – and do not include those sweat pants that have been so comfortable for so long. It meant having that mask in your pocket or around your neck (just in case), an extra mask in the car – again, just in case – hand sanitizer, cellphone and wallet. Yes, it was good to go out again and Californians were ready.

The pandemic had thrown them the worst and they survived. Now it was time to celebrate … the sky was the limit; here we go! But wait – do we really have $100 to fill the gas tank? Is that restaurant across town (that you promised yourself you’d go to if you could just get out) really worth the cost of driving there? And maybe working from home for a little longer might be the best option.

According to AAA, a year ago California’s average gas price was $4.238 a gallon; a week ago it was $6.435 and, as of yesterday, June 22, the average cost of a gallon of gas was $6.371. California’s average is higher than the national average of $4.955. The average in Los Angeles County is $6.395.

The cost and availability of gas is an issue across the nation and globally. On July 1 the gas tax will rise by 2.8 cents per gallon in California bringing the total tax on gas to 53.9 cents per gallon. Gov. Gavin Newsom had proposed a gas relief plan for the upcoming July 1 increase, which was rejected by legislative leaders. He then proposed a plan that would give a $400 rebate to each registered vehicle owner, up to two cars, in the form of a debit card, like unemployment insurance. This was debated by state legislative leaders who preferred instead to give relief to all residents who earn up to $125,000 annually or jointly $250,000. Each person would get $200 of financial help. This is still in debate.

A little relief may come from the federal level. On Wednesday, President Joe Biden called on Congress to “suspend the federal gas tax for the next 90 days, through the busy summer season – busy travel season,” the President said in a press conference on Wednesday.

“Here’s what that means: Every time you go to the gas station to fill your tank, the federal government charges an 18-cent tax per gallon of gas that you purchase and at 24-cent tax per gallon of diesel you purchase. It’s a tax that’s been around for 90 years,” President Biden said.

There is debate from economists to politicians on how much this will help and remind the public that this is only a 90-day break – though it is a break.

“I have been in direct touch with the White House to encourage them to temporarily suspend the gas tax and bring immediate relief to families struggling to make ends meet. But we shouldn’t stop there. We should also hold Big Oil accountable for the price-gouging that is driving prices up in the first place, and I’ve introduced legislation that would tackle these problems at once by suspending the federal gas tax, paid for by a 50% tax on the excess profits of major oil companies, with the revenue going towards roads and highways in our communities. This is just one of several actions the federal government can take to ease pain at the pump,” said Rep. Adam Schiff.

President Biden added that he was reaching out to states to “either suspend [the] state gas tax as well or find other ways to deliver some relief.”

He also called out to the gas industry to refine more oil into gasoline and to bring down the prices.

“Last week, I sent a letter to the CEOs of the largest oil-refining companies asking them to work with my administration to bring refineries back online to get more gas to the pump at lower prices,” he added.

In the meantime, prices at the pump are going down, ever so slightly, and maybe in the next three months Congress, the Biden Administration and refinery CEOs will actually work together to give relief to everyone who is affected by the rising gas prices – which is actually everybody because the high rates are being passed on to those even without a vehicle. The rising cost of fuel, especially diesel, means that anything transported on a truck, train or ship is affected.

Just in case they don’t work it out, maybe Californians should set aside as much savings as they can because the end of this “gas tax holiday” could send us all into sticker shock.