|
The average gasoline price in May eased somewhat, down 6 cents in California and down 8 cents in the rest of the US. In the latest data from CSAA as of June 5, prices were unchanged nationally and edged up 3 cents in California. Price pressures going forward will come from increased demand as summer driving continues to pick up and a likely rise in world oil prices due to the recent OPEC production cuts. These cuts are partially offset by a 7.0% rise in US oil production (12-month average, March 2023 compared to March 2022), but will have less of an effect on California supplies as state
production instead dropped 7.3% in this period. California prices will also rise due to the pending increase in gasoline and diesel taxes on July 1.
Diesel prices—a key factor in the cost of food and other goods—saw slightly higher price easing, down 15 cents in California down 18 cents in the other states.
Average electricity rates and the average annual residential electricity bill continued to break records due to the sustained cost increases under the state’s energy and related polices. At the same time, state policies are being constructed to force households and employers into relying on this single source of energy. The evolving cost consequences are illustrated in the “Tesla Index” presented below. Comparing California costs to those in the rest of the US, this chart is based on the annual fuel costs for a Model 3 (long range), average residential rate, mileage estimates from the US EPA, and an average of 12,500 miles driven annually from US Department of Transportation data. Based on these assumptions, the Index has
risen 52% since the Model 3 introduction in 2017 solely based on the soaring cost of electricity in this state. Note that actual costs will vary, depending on time of day charging, driving and charging behavior, differing costs of electricity by provider in different parts of the state, and access to in-home charging, with renters more likely to be dependent on more-costly public charging networks. Recent analyses have also suggested that the US EPA ratings under estimate actual energy use for electric vehicles. Even with these caveats, the charts illustrates the extent to which rising electricity costs are undermining the economics of other policies now being pursued by the state.
|
