BY Juan Alanis
Assembly D-22
Representing the agriculture-rich Central Valley, I am deeply attuned to the struggles of Californians struggling with rapidly increasing costs of basic necessities. Housing, food, energy and transportation have become financial hurdles for many, and things are set to get even worse as state policies directly impact fuel prices.
In a letter to Governor Newsom last year, I highlighted the challenges Californians face due to rising fuel prices, which drive up the costs of goods and services. As we strive for a greener future, it is crucial to consider the broader implications of state policies on the affordability of daily life.
California fuel prices, already at a premium, are poised to increase again as a result of state policy decisions. It is imperative to address this issue and seek solutions that balance our environmental goals with the economic realities faced by working people up and down the state.
The 8% gas tax increase implemented in July continues to hurt consumers, especially considering that Californians already pay the highest gas taxes in the country—more than 50% above the national average. Two years ago, the governor proposed pausing the 2022 gas tax increase to provide relief to consumers, but unfortunately, this proposal was abandoned. I urge the governor to reconsider and suspend the gas tax increase scheduled for this July. Gas prices have historically spiked in the summer, making it a time to provide much-needed financial relief to California families, not raise their cost of living even higher.
The diesel tax holiday, which was implemented to reduce commercial transportation costs and lower the price of consumer goods, expired on September 30, 2023. In the fight against inflation, allowing diesel taxes to increase is a step in the wrong direction. Adding costs to the people who move products around our state will exacerbate inflation and worsen the state's affordability crisis.
Thirdly, the last two years saw piecemeal attempts to bring down gas prices by accelerating the transition from summer-blend gasoline to the less expensive winter blend. Gavin Newsom, panicking about the impact of high gas prices on his political fortunes, provided temporary relief, but wouldn’t it be better to have affordable gas to begin with? California’s energy policy has consisted of ever-rising prices with occasional temporary, modest relief followed by more price increases.
Finally, attacks on the petroleum industry are counterproductive. Penalizing these businesses for supplying gasoline at market prices is an attack on tens of thousands hard working Californians and their families.
In crafting a solution, it is essential to balance our state’s environmental goals with the immediate financial strain on struggling Californians. We must find an approach that protects both the environment and the economic well-being of our citizens.
As we navigate these economic waters, let us adopt a proactive and unified approach. Suspending the upcoming gas tax increase, extending the diesel tax holiday, and reforming our system of switching between seasonal fuel blends will ease the financial burden for California families. By striking this balance, we not only safeguard our economy but also uphold our commitment to responsible governance.
As we advocate for a greener and more sustainable California, we must ensure that our policies do not unduly burden our citizens. By implementing thoughtful and measured adjustments to current policy decisions, we can create a pathway to a future that harmonizes environmental responsibility with economic resilience, benefitting all Californians.
