Californians will need to make up to $1,000 a year more to afford projected gas prices for 2025, a professor from the University of Southern California has estimated.
A study by Michael A. Mische of the university's Marshall School of Business noted that fuel prices in the state are expected to increase by as much as 62 percent higher than the national average.
The increase is due to come after the California Air Resources Board passed updates to the state's Low Carbon Fuel Standard which includes requiring gas stations to carry a more expensive, but cleaner, fuel blend.
Estimates vary for the exact amount that fuel prices will increase. The California Air Resources Board estimates that the change will raise retail prices of gasoline by $0.47 a gallon.
However, Mische cites a separate study by the University of Pennsylvania Kleinman Center for Energy Policy that estimates that retail prices could increase by $0.65 a gallon next year, $0.85 a gallon in 2030 and $1.50 a gallon in 2035.
Beyond the new fuel blend, prices will also be driven up by the passage of ABX2-1 in October, which requires California oil refineries to maintain a ready stock of finished gasoline, Mische said.
The additional costs for producers are expected to cause retail prices to further increase by $0.047 to $0.27 per gallon, depending on the required amount of supply.
To compensate for these increased prices, an average Californian would need to earn between $600 and $1,000 more in pre-tax income compared to 2024 levels, Mische estimated.
California already has the highest average gas prices in the nation, with regular gasoline priced at $4.96 per gallon, according to the World Population Review. This is due to a variety of factors, including higher taxes and more strict environmental regulations.
The Golden State has historically led the nation in emissions reduction efforts, partly because of its air quality issues. It is the only state that can implement stricter emissions standards than those set by the federal government.
President-elect Donald Trump has pledged to prevent any individual state from setting its own emission rules and from banning gasoline-powered vehicles, a policy California plans to phase in by 2035.
"The world is watching California to see if we will maintain leadership or fracture under internal pressure for perfectionism," state Senator Henry Stern said in a statement after regulators voted to allow changes to the Low Carbon Fuel Standard earlier this month, per Reuters.
"California has a long history of enacting visionary and affordable climate policies that are durable enough to endure major shifts in national politics like we just witnessed."
California Gov. Gavin Newsom signed a new law in October to help combat soaring gas prices, marking an escalation in his ongoing confrontation with the oil industry over energy costs and the impact of global warming.
English (US) ·