3.2-Cent Gas Tax Increase Kicks In, But Lowered Demand Keeps Prices at Pasadena Pumps Stable

A 3.2-cent-per-gallon tax increase took effect throughout California on Wednesday, yet the Los Angeles metropolitan area has not seen a coinciding increase in price at the pumps, which experts said Thursday was likely due to continued low demand amid the coronavirus pandemic.

In fact, Southern California gas prices “settled at a plateau for the first time in two months,” according to a statement from the Automobile Club of Southern.California.

The average price for regular, self-serve gas in the L.A.-area was $3.08-per-gallon, “which is up one cent from last week, 13 cents higher than a month ago and 71 cents lower than last year,” according to the Auto Club statement.

“Los Angeles wholesale gasoline prices have not continued their upward push of the past two months because a pause on reopening the economy has created worries about fuel demand,” Auto Club spokesman Doug Shupe said.

“However, drivers have not seen a drop at the pump either because of the gas tax increase,” he said.

The statewide average price was $3.07-per-gallon, also up a penny over last week.

The tax increase was automatically triggered by an increase in the consumer price index, per California law.