Photo: Flickr / austinevan
The average California family uses about 100 gallons of gas a month, according to AAA’s Michael Green.So with an average price of about $4.50 a gallon, that adds up to $450 they will spend on gas, starting from last week.
“That hurts families,” Green said. “They can’t spend that money on something else, it’s money can’t save.”
Spending on restaurants and movies usually goes first, he said. And low-income families, who spend around 10 per cent of their discretionary income on gas, will be hurt hardest.
The $450 figure doesn’t even include indirect costs families will pay as consumer items become more expensive to ship, Green added.
And of course, business’s profit margins will go down.
But Green said the worst does appear to be over, as prices only increased by one cent today — the result of gas traders having fully reckoned the extent of the state’s gas shortage.
But it’s not clear when or by how much Gov. Jerry Brown’s order to waive the state’s expensive summer fuel blend mandate will kick in.
“We really just don’t know,” Green said. “We really are in unprecedented territory.”