Gas prices are about to jump for California drivers. The California Air Resources Board (CARB) has approved new low carbon fuel standards aimed at combatting climate change and pollution.
The current state average for a gallon of gasoline is $4.51 per gallon. That’s already one of the highest in the nation, and over a dollar more than the national average of $3.08.
Once the new standards take effect, oil companies will be forced to buy more carbon credits or reduce carbon emissions during production. The added cost is expected to be passed along to consumers.
It’s not clear just how much gas prices will increase. A CARB analysis from 2023 estimated the increase at 47 cents per gallon. A University of Pennsylvania study predicts a much higher increase of 85 cents per gallon.
The price hikes are likely to worsen the frustrations of working families, who are already struggling with the high cost of living in California. High costs have caused an exodus of Californians to states like Texas and Arizona, and likely contributed to the rightward shift seen in last week's presidential election.
Air resources board member Dean Florez was one of two people to vote against the new standards.
In a recent CalMatters op-ed, Florez warned that the resulting cost increases “would affect essential goods and services, as transportation costs ripple through the economy, impacting food prices, housing affordability and more. He added that “these additional costs could become overwhelming, pushing many into deeper financial insecurity.”
The change was also opposed by some environmental groups.
“It is not based on science, and it will undermine environmental justice and the rapid transition to zero emissions that we need more than ever today,” said Nina Robertson, a senior attorney with Earth Justice. “It represents a grab bag of giveaways to polluting special interests that have turned what once was a program for climate progress into a piggy bank for their false climate solutions.”
Read more about the new standards and their expected impacts here.
See also:
California legislative leaders signal concern with regulator decision that could raise gas prices