California is set to see even higher gas prices starting July 1, as a gas excise tax increase and updated emissions regulations take effect.
The tax hike adds almost two cents per gallon to already-high gas prices across the state, from 59.6 cents to 61.2 cents per gallon. Additionally, the diesel tax increase will rise from 45.4 to 46.6 cents per gallon.
The tax increase is meant to address rising prices for repairing, improving, and building streets, roads, and highways.
Overall, California’s gas taxes will cost the average household an estimated $612 per year.
Meanwhile, California’s updated Low Carbon Fuel Standard rules are predicted to add at least another 5 to 8 cents per gallon at the gas pump. In 2011, the previous rules added 9 cents.
The California Air Resources Board approved the emissions regulations last November to help meet the state’s goal of 30% carbon reduction by 2030 and 90% reduction by 2045. The revised rules are part of the state’s broader efforts to fully transition from gas-powered cars to electric vehicles by 2035.
The LCFS program was first established by former Gov. Arnold Schwarzenegger in 2007 and continues operating under Gov. Gavin Newsom (D-CA).
Newsom’s administration is shutting down claims on social media about a 65-cent increase after the gas excise tax increase and new emissions regulations take effect on Tuesday.
“FACT: there is no 65 cent gas tax starting next week,” Newsom’s press office posted on X on Saturday, responding to criticism from Trump administration official Richard Grenell. “The gas tax is increasing by 1.6 cents — which was approved by the legislature in 2017 and California voters in 2018, before Governor Newsom took office.”
Contradicting Newsom’s narrative, a University of Pennsylvania report cited by Republican lawmakers found there would indeed be a 65-cent increase in the short term and an increase of nearly $1.50 per gallon in a decade. California State Senate Minority Leader Brian Jones pushed the claim, while promoting his online petition to repeal the governor’s gas price hike.
Newsom’s office dismissed what it called “disingenuous claims” about the state’s rising gas prices, alleging in a press release that the oil industry has pushed those numbers.
GAS PRICES: FUEL COSTS CONTINUE TO FALL, HITTING LOWEST JUNE PRICE POINT SINCE 2021
California currently has the highest average gas price in the United States at $4.594 per gallon, according to AAA. However, that price is roughly 17 cents lower than the same time last year.
While California’s gas prices are projected to rise, fuel costs continue to fall across the nation this summer despite tensions in the Middle East. This June marked the lowest June gas prices seen in the last four years, with a national average gas price of $3.185 per gallon as of Monday.