Surging Gas Prices A Pain For Drivers, Windfall For Struggling SoCal Cities

LOS ANGELES (CBS) — That pain you may be feeling at the gas pump is bringing some much-needed paper to the coffers at City Hall.

KNX 1070’s Pete Demetriou reports the continue rise in gas prices has brought in more sales tax revenue to city governments.

With gas prices averaging $3.73 per gallon and expected to hit $4 per gallon within months, cities in the San Gabriel Valley have seen sales tax revenue jump as much as 20 percent over the last 18 months.

The windfall has seen many gas stations outstripping local “big box” stores, malls and even auto dealerships as Sacramento begins scaling back funds for local governments.

Driver Keith Green said he understands why cities are seeing dollar signs — and in some cases encouraging the building of more gas stations near freeways.

“Gas stations aren’t going anywhere anytime soon, so at the same time, why not capitalize on the increased taxes for gas,” he said.

But some business groups have expressed concern that if gas prices break through the $4-per-gallon barrier again, families will cut back on travel and gas consumption, which would send revenue plummeting and further destroy consumer confidence.

More from Pete Demetriou

One Comment

  1. FFL says:

    But of course the ‘anointed messiah’ in DC has vetoed the Keystone Pipeline.. What a no brainer .. destroyed SURE THING jobs and helping OUR own energy independence.. but with him RADICAL politics is always first and the nation be damned. I hope all remember this in November!

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Los Angeles

KNX 1070 Newsradio

Listen Live