California drivers are bracing for a double-whammy at the pumps as stricter clean air regulations and an increase in the state’s gas excise tax are set to take effect on July 1, which could send fuel prices soaring.
A last-minute push by state lawmakers to stop what may result in the lion’s share of the hike fizzled out, as Senate Democrats unanimously shot down Senate Bill 2, which aimed to halt sweeping changes to California’s Low Carbon Fuel Standard (LCFS).
“I gave my Democrat colleagues the opportunity to protect Californians’ wallets, their constituents, and they chose not to,” Sen. Brian Jones, who authored the bill, told CBS 8 San Diego in a story published June 6.
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New rules, new prices?
The California Air Resources Board (CARB) has greenlit new LCFS regulations aimed at reducing carbon levels in fuels while outlining penalties against refineries that produce high emissions.
Analysts are wary of how much increased production costs might be passed on to consumers. One report from the University of Pennsylvania’s Kleinman Center for Energy Policy estimated the price of gas in the state could spike $0.65 per gallon in the “near term” and $0.85 per gallon by 2030. However, the report emphasized these were “upper-bound” estimates and the price impact could end up being a lot lower.
Adding a pinch of salt to this potential wound, California’s excise tax on gas is set to increase from 59.6 cents to 61.2 cents per gallon the same day the new regulations are scheduled to take effect.
For working families, high fuel costs are already squeezing their wallets.
“It’s a struggle. It’s a struggle,” San Diego-based driver Michael told CBS 8.
“You’ve got to have it! If this car doesn’t roll, we can’t go to work. And if you don’t go to work, you’re homeless,” his wife, Cynthia, explained to the local broadcaster.
Others, like Tino Cebrero, have switched to electric vehicles to beat the squeeze.
“For a full tank, what is it? $60 or $70? For a full charge, I only pay $15 or $20,” he told CBS 8. “So, it’s a big difference.”
As of June 12, according to AAA, California had the highest average price of gas in the country at around $4.66 per gallon.
CARB says it will monitor gas prices and may consider making changes if there are significant concerns, according to CBS 8.
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Tips to beat the gas hike
Looking to protect your wallet at the pump? Here are some strategies you can use:
Fuel rewards programs: Sign up at stores like Costco or Safeway for discounts on gas.
Use gas price tools: Find the cheapest gas near you using apps like GasBuddy, which uses crowdsourcing to list fuel prices across the country.
Carpool and rideshare: Share a ride with friends and split the cost.
Stay on top of car maintenance: Proper vehicle upkeep, including optimal tire pressure and using the right type of oil, can help boost fuel efficiency.
Try public transportation: If you live in a city large with public transit options, you can rack up serious savings.
Consider switching to electric or hybrid: If you need to buy a new set of wheels, purchasing an electric or hybrid vehicle may save on fuel costs in the long term.
Plan smart: Figure out a game plan to combine errands and avoid peak traffic.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.