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IPFS News Link • California

Gasoline price in Los Angeles rises to as much as $7.83 a gallon...

•, by: Mary Villareal

Motorists in the United States are now grappling with sky-high gasoline prices that are reaching records daily.

In some locations, a gallon of regular fuel is higher than the federal minimum wage of $7.25. For example, the Chevron station on Alameda St. is now charging $7.83 a gallon.

California drivers are now paying more for gas compared to others in any other state. The reason for this is partly due to higher taxes to pay for infrastructure and other costs, but economist Severin Borenstein of the University of California, Berkeley, said there is also a "mystery gasoline surcharge" or a price gap that can't entirely be explained by fees or other factors.

Los Angeles is only the second metro after San Francisco to have the average cost for a gallon of gasoline to surpass $6. Patrick De Haan, the head of petroleum analysis for GasBuddy, noted that more cities in California will likely join them in the future, although he does not see other cities at high risk of hitting $6 yet. (Related: Gas prices in San Francisco Bay Area reach $5 per gallon amid shutdown of oil refineries.)

Gas prices also remain at record highs as Americans head into the Memorial Day weekend, which serves as the unofficial kickoff to summer. Millions of people hit the road for vacations or to visit family and friends.

Despite the soaring fuel prices, most drivers are still filling up at the pumps, with AAA forecasting over 39 million traveling more than 50 miles from their homes for the holiday weekend – a jump of about eight percent from the previous year when gas prices were about $3 on average.