Starting July 1, California residents will face another gas price hike. With new climate regulations and a simultaneous increase in gasoline taxes, prices could rise by up to 65 cents per gallon, adding significant pressure to the state’s already nation-leading gas costs.

The primary driver of this increase is the amended “Low Carbon Fuel Standard” approved last fall by the California Air Resources Board (CARB). This standard raises costs for refineries producing high-carbon fuels, costs likely to be passed on to consumers. Additionally, the state’s gasoline excise tax will increase by 2 cents per gallon, bringing the total to 61.2 cents.

Opposition to these measures has been strong. Republican State Senator Brian Jones (San Diego) introduced Senate Bill 2 (SB 2) to nullify CARB’s regulatory changes, but it was rejected on June 4 in a 10-23 Senate vote, with all Democratic senators opposing.
Jones criticized the measures, stating, “With persistent inflation and rising energy costs, this is another major blow to struggling Californians. We need balance between climate goals and the economic realities of working families.” He highlighted the lack of practical alternatives for residents in suburban or low-transit areas who rely on cars.
In contrast, Democratic senators defended the new fuel standards as essential for combating climate change. Senate Democratic Leader Lena Gonzalez called them “critical for a sustainable future,” emphasizing their role in reducing greenhouse gas emissions and accelerating the shift to cleaner fuels.

CARB acknowledged consumer concerns, stating it will “monitor unexpected market impacts.” However, many residents are already worried about the financial burden they’ll feel at the pump next month.

California’s gas prices are already over $1 higher than the national average. In areas with limited access to electric vehicles or public transit, particularly for middle- and low-income communities with high gasoline dependency, the price hike could be especially burdensome. Experts note that while these measures may drive long-term transitions to greener energy, they are likely to cause significant short-term economic strain for residents.

By Sehee Roh, Reporter