A long-standing initiative to reduce emissions could lead to a 50-cent increase in gasoline prices within two years in California, as per a report from a relatively obscure state air quality regulator.
In September, the California Air Resources Board (CARB), the state's primary environmental regulator, announced that gas prices would go up by about 50 cents a gallon next year and each year thereafter to support clean air efforts. This price hike does not include the existing gas tax in the state.
Republican state Sen. Janet Nguyen, a prominent advocate for fiscal responsibility, criticized the "secret" tax increase in an interview with Fox News Digital, saying it would disproportionately affect Californians, particularly the middle and lower-income groups, who are already grappling with the state's high cost of living. Nguyen pointed out the confusion between the carbon tax and the state tax, calling it a "tax on the tax."
The report predicts increases in gasoline prices due to reforms in the Low Carbon Fuel Standard implemented in 2007, with prices likely to rise by 47 cents next year and 52 cents by 2026. Diesel prices could increase by 59 cents this year and 66 cents in two years. Long-term projections suggest gasoline could rise by $1.15 and diesel by $1.50 per gallon from 2031 to 2046, with jet fuel increasing by $1.21.
However, the air board staff later described the gas price hike projections as "incomplete" in a December report, shifting the focus to the cost savings for drivers transitioning to electric vehicles (EVs).
The report comes as CARB finalized new rules last month mandating a rapid transition from traditional petroleum-powered transportation to zero-emissions alternatives, aligning with its ambitious climate agenda. This transition includes passenger cars, heavy-duty trucks, freight trains, and harbor vessels. California is also phasing out new gas-powered cars and requiring 100% electric vehicle sales by 2035. Nearly 20 other states have adopted similar rules, impacting over 40% of the country.
This broad effort to electrify the transportation sector is part of the California Climate Commitment unveiled by Governor Gavin Newsom two years ago. The plan aims to phase out fossil fuels, increase green energy deployment, reduce greenhouse gas emissions by 85% by 2045, and decrease oil demand by 94%.
"We can solve this climate crisis if we focus on the big, bold steps necessary to cut pollution," Governor Newsom said in August 2022.