California gasoline and power prices could increase in the coming years, beginning this spring, according to proposed state fuel laws.
California already has some of the highest gas prices in the country. According to AAA, the national average price per gallon is $3.35 as of Sunday, with California’s cost at $4.83. Although petrol is more expensive in California than in most other states, prices may rise even farther.
The California Air Resources Board issued a critical study known as the standardized regulatory impact assessment (SRIA), which emphasized the effects of adjustments to the state’s Low Carbon Fuel Standards (LCFS) program that will go into effect this year.
The Low Carbon Fuel Standard is intended to “decrease the carbon intensity of California’s transportation fuel pool and provide an increasing range of low-carbon and renewable alternatives, which reduce petroleum dependency and achieve air quality benefits,” according to the Air Resources Board. The proposed program adjustments aim to discourage gas and electric firms from producing gasoline/diesel while also promoting cleaner alternatives to fossil fuels.
“There are no direct regulatory costs incurred by individuals as a result of the proposed amendments,” California Air Resources stated. “Businesses that incur costs may pass on costs to consumers, which could result in increased prices for gasoline and diesel.”
The analysis predicts an increase in the cost of gas and electricity.
“Once the proposed amendments are implemented in 2024, they are projected to potentially increase the price of gasoline by an average of $0.37 per gallon,” according to the research.
Drivers can expect gas prices to reach $5 per gallon by spring and continue to rise.
The survey also found that diesel prices could rise by an average of $0.47 per gallon and fossil jet fuel by $0.35 per gallon. By 2026, average gas prices in California are expected to rise by $.52 per gallon, and from 2031 to 2046, the proposed modifications are expected to hike petrol costs by $1.15.