Latest news with #Mische
Yahoo
23-05-2025
- Business
- Yahoo
The State Where Gas Could Top $8 a Gallon Soon — and How To Save on Gas
From 2020 to 2022, inflation wreaked havoc on consumer prices. For some, the pain was most acute at the gas pump, where national prices rose by an astronomical 89.5%, according to the Pew Research Center. Although prices have abated a bit in 2025, one report, as reported by ABC 7 News, suggests that things could get much worse for the state that already has the highest gas prices in the nation — California. In fact, Michael Mische, a professor at the University of Southern California who wrote the report, believes that gas prices could rise to as much as $8 by 2026 in California, which currently has an average gas price of about $4.88, per AAA. Read Next: Check Out: Here are the reasons behind Mische's thesis, along with a look at what Californians can do to save on gas. While it remains to be seen whether gas prices in California will actually reach $8 per gallon, there are some solid economic principles behind Mische's prediction — specifically, the law of supply and demand. Several refineries in California, including ones in Benicia and Los Angeles, are slated to close. This will lower the supply of oil and gas, knocking the supply-demand equation out of whack. As any economics student can tell you, when the supply of a good or service that is in demand falls, its price rises. That's exactly what Mische sees happening in California. Not everyone agrees. California's governor, Gavin Newsom, is one of the most vocal critics of Mische, questioning both Mische's credibility and his predictive model, ABC reported. Learn More: State governments don't control gas prices, but the policies they enact can certainly influence them. To that end, Mische had some direct recommendations for California's governor and legislators, ABC reported. Those include rolling back the state excise tax, delaying any low-carbon fuel standard implementation and capitating cap-and-trade to a fixed amount. 'Those would all be beneficial to the California consumer,' Mische said. While individual consumers don't have much control over the direction of gas prices, there are some steps everyone can take to help minimize the pain. Use mobile apps to find cheap gas: A number of apps like GasBuddy can show the lowest gas prices available in a given area. Pump regular gas: Although gas stations are good at making midgrade and premium fuel sound attractive, and even necessary, the truth is that regular unleaded fuel is perfectly fine for the vast majority of cars on the road today. Always using regular gas can save you a significant amount of money. Take advantage of discounts: Some gas stations offer a discount if you use cash instead of a credit card. If you use a credit card, consider using one that gives you cash back or other bonuses for purchases at gas stations. Most major oil companies also offer their own credit cards that can provide discounts on the amount you pay at their stations. Plan your trips: Combining your daily trips into one and using a fuel-efficient method to reach all your stops is a good way to lower your gas costs. Cut down on your driving: Consider using public transportation or ride-sharing to avoid paying for gas. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs Sources Pew Research Center, 'Eggs, gasoline and car insurance: Where inflation has hit Americans hardest.' ABC 7 News, 'California gas prices could top $8 a gallon by 2026, new study says.' AAA, 'Fuel Prices.' This article originally appeared on The State Where Gas Could Top $8 a Gallon Soon — and How To Save on Gas
Yahoo
23-05-2025
- Business
- Yahoo
The State Where Gas Could Top $8 a Gallon Soon — and How To Save on Gas
From 2020 to 2022, inflation wreaked havoc on consumer prices. For some, the pain was most acute at the gas pump, where national prices rose by an astronomical 89.5%, according to the Pew Research Center. Although prices have abated a bit in 2025, one report, as reported by ABC 7 News, suggests that things could get much worse for the state that already has the highest gas prices in the nation — California. In fact, Michael Mische, a professor at the University of Southern California who wrote the report, believes that gas prices could rise to as much as $8 by 2026 in California, which currently has an average gas price of about $4.88, per AAA. Read Next: Check Out: Here are the reasons behind Mische's thesis, along with a look at what Californians can do to save on gas. While it remains to be seen whether gas prices in California will actually reach $8 per gallon, there are some solid economic principles behind Mische's prediction — specifically, the law of supply and demand. Several refineries in California, including ones in Benicia and Los Angeles, are slated to close. This will lower the supply of oil and gas, knocking the supply-demand equation out of whack. As any economics student can tell you, when the supply of a good or service that is in demand falls, its price rises. That's exactly what Mische sees happening in California. Not everyone agrees. California's governor, Gavin Newsom, is one of the most vocal critics of Mische, questioning both Mische's credibility and his predictive model, ABC reported. Learn More: State governments don't control gas prices, but the policies they enact can certainly influence them. To that end, Mische had some direct recommendations for California's governor and legislators, ABC reported. Those include rolling back the state excise tax, delaying any low-carbon fuel standard implementation and capitating cap-and-trade to a fixed amount. 'Those would all be beneficial to the California consumer,' Mische said. While individual consumers don't have much control over the direction of gas prices, there are some steps everyone can take to help minimize the pain. Use mobile apps to find cheap gas: A number of apps like GasBuddy can show the lowest gas prices available in a given area. Pump regular gas: Although gas stations are good at making midgrade and premium fuel sound attractive, and even necessary, the truth is that regular unleaded fuel is perfectly fine for the vast majority of cars on the road today. Always using regular gas can save you a significant amount of money. Take advantage of discounts: Some gas stations offer a discount if you use cash instead of a credit card. If you use a credit card, consider using one that gives you cash back or other bonuses for purchases at gas stations. Most major oil companies also offer their own credit cards that can provide discounts on the amount you pay at their stations. Plan your trips: Combining your daily trips into one and using a fuel-efficient method to reach all your stops is a good way to lower your gas costs. Cut down on your driving: Consider using public transportation or ride-sharing to avoid paying for gas. More From GOBankingRates 4 Affordable Car Brands You Won't Regret Buying in 2025 Sources Pew Research Center, 'Eggs, gasoline and car insurance: Where inflation has hit Americans hardest.' ABC 7 News, 'California gas prices could top $8 a gallon by 2026, new study says.' AAA, 'Fuel Prices.' This article originally appeared on The State Where Gas Could Top $8 a Gallon Soon — and How To Save on Gas
Yahoo
09-05-2025
- Business
- Yahoo
Newsom's office pushes back on report claiming 75% spike in California gas prices by 2026
Gov. Gavin Newsom's office is pushing back on claims made in a recent report that gas prices in California could surpass $8 per gallon by the end of 2026. The report, authored by Michael A. Mische of USC's Marshall School of Business, stated that the scheduled closure of the Phillips 66 refinery in Los Angeles, along with Valero's planned shutdown of its facility in Northern California, 'represents a potential 21% reduction in California's refining output over three years.' Mische and other experts argue that reduced refining output is a major reason why California drivers consistently see the nation's highest gas prices. 'The estimated average consumer price of regular gasoline could potentially increase by as much as 75% from the April 23, 2025, price of $4.816 to $7.348 to $8.435 a gallon by calendar year end 2026. We can expect retail prices to be even higher in counties such as Mono and Humboldt,' Mische wrote. However, Newsom's office claimed that Mische is 'bankrolled by Saudi Arabia' and utilized the scientific method of 'guessing.' In a statement to KTLA, Mische admits to working for Saudi Arabia but said his work was related to a project called Vision 2030. 'Allegations have been leveled as to being an 'agent' of, working for or on behalf of, and being 'bankrolled' by Saudi Arabia. Nothing could be further from the truth, and the allegations are patently inaccurate and without substance and merit. For the record, my work in Saudi Arabia had absolutely nothing to do with petroleum, and I received no payments from any Saudi petroleum company or any oil company,' Mische told KTLA. He said his Vision 2030 work involved steering the Saudi economy away from fossil fuels. Mische also called the allegations 'perverse.' He shared that he has offered the governor, or any member of his staff or legislature, the opportunity to meet with him on this matter. He told KTLA that he would provide them with complete transparency into the work. 'We have not received any direct outreach. The Governor relies on the experts he's appointed at the Energy Commission, Division of Petroleum Market Oversight, and the Independent Consumer Fuels Advisory Committee to keep the state informed of market dynamics,' Daniel Villaseñor, a spokesperson for Gov. Newsom, said in a statement to KTLA. Newsom's office isn't the only one casting doubt on the report. Consumer Watchdog announced Thursday that its president, Jamie Court, wrote to the leaders of the University of Southern California asking that it investigate Mische for a violation of the university's conflict of interest code since he didn't disclose that he had ties to Saudi Arabia. 'The recommendations from Mische's report are a treasure trove of tax subsidies and giveaways to both the refining and oil production sector,' Court wrote in the letter. Saudi Arabia's state-owned oil company, Saudi Aramco, has an interest in refining in the United States. There is no question that the policies Mische advocates will inure to the benefit of his client.' 'The university received and is reviewing Jaimie Court's letter. We are unable to discuss any individual cases due to the confidential nature of personnel matters,' a statement from USC read. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Epoch Times
09-05-2025
- Business
- Epoch Times
Newsom Disputes Analysis by USC Professor on Potential Rise in California's Gas Prices
The office of California Gov. Gavin Newsom on May 7 criticized an analysis by a University of Southern California (USC) professor on the potential impact of refinery shutdowns and state policies on gas prices. Michael Mische, a professor at USC's Marshall School of Business, had Two Phillips 66 refineries in Los Angeles are set to close by the end of this year, and a Valero refinery in the San Francisco Bay area will shutter or restructure by April 2026, according to the companies. These and other factors could result in a potential 21 percent drop in refining capacity from 2023 to April 2026, said Mische. 'The collective consequence of the pending refinery exits to the Golden State is potentially devastating to California's economic growth and status as the fourth largest economy,' said Mische in the 'The high operating costs, together with what many consider to be a hostile political and regulatory environment towards refiners ... create an inevitable 'death spiral' for the oil and gas industry. Consequently, refiners are exiting the Golden State.' The professor included a series of recommendations to roll back regulations and entice refiners to stay in California. Related Stories 5/6/2025 4/2/2025 Brandon Richards, deputy director for rapid response for Newsom's office, accused Mische of 'fearmongering for personal and professional profits' with his report. 'Mr. Mische fails to provide evidence to support his main claim that gas prices could increase by 33.6% by the end of 2025 and 75% by the end of 2026,' he told The Epoch Times in an email. 'Instead, there are a few vague references to 'models' but no details about the model structure, the data used, or how these numbers were estimated.' In a May 7 post on social media platform X, Newsom also In response to a request for comment, Mische told The Epoch Times that he worked on a publicly disclosed project funded by the Saudi public investment fund from 2019 to 2021 that sought to diversify the Saudi economy away from petroleum. '[It] had nothing to do with petroleum. It was the antithesis of petroleum,' he said. 'I'm not an advocate of the oil and gas industry.' For his latest analysis, Mische said he ran 20 to 30 different variations on models for future gas prices in California, and 'in all instances, we had an increase in price.' 'The real issue is, the price is going to go up,' he said. Mische also said he didn't conduct the research to make a profit or for personal gain. 'There's no sinister motivation here,' he said. 'I didn't go into it with any profit motivations or self-service.' In an April 21 letter, Newsom directed California Energy Commission vice chair Siva Gunda to 'redouble' the state's efforts to work closely with oil companies to ensure a 'safe, affordable, and reliable supply of transportation fuels, and that refiners continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades.'
Hindustan Times
08-05-2025
- Business
- Hindustan Times
Record-breaking gas prices in California by 2026? Here's what a gallon could cost you
Gas prices is an ever-increasing headache for Americans, but for Californians, things may get even complicated come 2026. This new fear has been "unlocked" following a recent study by a University of Southern California professor. Gasoline prices in California to see major hike in 2026, says new study(Unsplash) The study suggests that gasoline prices in the state could rise to $8.44 per gallon by the end of 2026. Professor Michael A. Mische, who conducted this study attributed this escalating rise of gas prices to the pending closure of two refineries. He suggests that once these refineries in California shut down, one-fifth of the state's refining capacity would see a disruption, leading to rising prices. Gas prices in California could touch $8.44 per gallon come next year, from $4.78 per gallon (current rates). According to AAA reports, CA gas prices are highest in the country, and if the study's claims come true, this could have a nationwide impact based on shortened supply of gasoline. ALSO READ | What does black smoke at the Vatican mean? Papal conclave day 1 ends without a new pope Professor Mische closely studied California's historical gas prices, oil supply and refining capacity. Then this entire data was modeled along the the likely impact of refinery closures, coupled with costly new fossil fuel and the new refinery fees and regulations. Based on these calculations, it is being predicted that CA gas prices could touch record peak in 2026. Around his study Professor Mische went on to say, "Based on current demand and consumption assumptions and estimates, the combined consequences of the Phillips 66 and Valero refinery closure, together with the potential impact of legislative actions such as, but not limited to, the new LCFS standard, increase in excise taxes, Cap and Trade, SBX1-2, and ABX2-1 could create an impact. The estimated average consumer price of regular gasoline could potentially increase by as much a 75% from the April 23, 2025, price of $4.816 to $7.348 to $8.435 a gallon by calendar year end 2026."
