California’s gas prices have sparked debate recently, with Republican lawmakers claiming drastic increases. However, the Office of Governor Gavin Newsom asserts that these claims are misleading. In a press release, Newsom’s office noted that gas prices in California are currently 20 cents lower than last month and 17 cents lower than the same time last year.
Two changes to fuel prices are anticipated around July 1: a 1.6-cent gas tax increase and updates to fuel standards that could add between five to eight cents per gallon. The Governor’s Office emphasized that claims of a 65-cent increase are exaggerated, stating, “Gas prices won’t come anywhere close to increasing by 65 cents, as many would have you believe.”
The gas tax adjustment is part of a legislatively mandated increase from 2017 aimed at funding road repairs, which voters supported in 2018 when they rejected a repeal attempt. The Low Carbon Fuel Standard (LCFS), established by former Governor Arnold Schwarzenegger, is projected to contribute five to eight cents to gasoline prices but is expected to yield significant savings in the long run, potentially over $20 billion by 2045.
The Governor’s Office dismissed claims that gas prices could exceed $8 per gallon by 2026, attributing this estimate to an unscientific analysis lacking evidence. Economists from Stanford University have suggested that any price increases related to recent refinery announcements will likely be minimal. Additionally, the Governor’s Office has provided context to a letter from the California Republican delegation, highlighting inaccuracies in their claims.
