During His State of the State Address, Newsom Discusses His Plan to Increase Gas Prices | March 2022

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The state’s slow recovery from COVID-19 continues. Residents have been divided by mask requirements, which are being lifted. Despite a recall election six months earlier, people voted to keep him in office. Larry Elder, his opponent, has stated that he will not seek a rematch.

However, the state is dealing with a major issue: rising gas prices.

During his State of the State address, Newsom contrasted California’s support for democracy and acceptance of diversity with the emerging “authoritarian impulses” in America that are fueling the conflict in Ukraine. However, he recognized that gas costs have risen.

He indicated that he and the Legislature are working on a strategy to help residents afford fuel. The governor’s January budget contained a plan to postpone a gas tax rise, which he expanded on in his speech. He stated that he would include a gas tax rebate for California residents in budget negotiations.

Gas Tax

“In January, we suggested a moratorium on gas taxes,” Newsom explained. “It’s evident that we need to go further now.” And that’s why, in collaboration with legislative leadership, I’ll be introducing a proposal to put money back into Californians’ pockets to address rising gas prices.”

However, the expense of transportation developments may be prohibitively expensive. According to a report released last month by the independent Legislative Analyst’s Office, a one-cent decrease in the state’s portion of the gas tax could result in a $175 million decrease in transportation revenue.

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According to The New York Times, based on wholesale gasoline futures right before President Biden’s decision Tuesday to cease US purchases of Russian oil, the national average gas price will likely hit $4.50 per gallon soon. Analysts also predict that California’s gasoline prices would rise to $6 to $7 per gallon. (Would you like to find cheaper gas? We created a guide that you might find useful.)

However, the address was not solely about gas. Newsom also addressed the issues of homelessness, COVID-19, and healthcare. Full coverage of his speech may be found here.

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