California drivers have long been burdened with high gasoline prices. According to data from the American Automobile Association (AAA), on Tuesday the 14th, the average price of regular unleaded gasoline in California was $5.272 per gallon, which is $1.66 higher than the national average of $3.612 per gallon, and $0.474 higher than California’s average oil price a year ago.
A little-known proposed report cited by FOX LA indicates that California’s steep gas prices could rise by nearly 50 cents further, with the aim of achieving the state’s ambitious emission reduction goals.
The California Air Resources Board (CARB), the state regulatory agency responsible for carrying out the world’s most ambitious climate actions, including California’s goal of achieving “carbon neutrality” by 2045. A revised version of the Low Carbon Fuel Standard (LCFS) preliminary report released by the board in September last year mentioned that as California progresses towards cleaner air goals, consumers may have to bear the burden of rising oil prices.
The report projects that by the next year (2024), oil prices could rise on average by 47 cents, with similar annual increases thereafter. “On average, from 2031 to 2046, the proposed amendments are estimated to potentially increase oil prices by $1.15 per gallon.”
CARB had scheduled a public hearing in March regarding the proposed amendments but ended up postponing it, with the date still undetermined. The board cited receiving “significant feedback on the proposed regulatory actions” and aims to allow more time for discussion of the proposals.
Republican State Senator Janet Nguyen from Huntington Beach, a staunch opponent of tax increases, believes that the proposed increase in oil prices is equivalent to a “secret” tax hike, which will lead to economic hardships for the majority of California residents.
Nguyen told KTVU, “The skyrocketing tax burden, from food to gas prices, is driving residents out of California. Some are even using credit cards to pay rent. What has the state government done? Besides levying gas taxes, there’s also an additional 47-cent hidden fee, and now we have to pay over $6 for gasoline.”
In a statement to KTVU, CARB denied the claim of a “secret” gas tax and stated that the figures presented in their preliminary report are simply providing a range of financial possibilities, considering how various low carbon fuel standard credit limits could potentially be passed on to California consumers by the fossil fuel industry.
CARB’s Public Information Officer, Dave Clegern, stated that the Low Carbon Fuel Standard is about rewarding low carbon fuel producers with credits paid by producers of polluting fuels to lower the cost of low carbon fuels in California. It is not a tax and does not bring in revenue to the state government.
In response to inflation, California’s gasoline tax is set to increase again starting July 1st, with the fixed consumption tax rising by 2 cents to reach 59.6 cents per gallon.