Gavin Newsom, Governor of California | Official website
California's gas prices have been the subject of numerous claims and misinformation recently. Despite assertions that prices are set to increase significantly, current data indicates otherwise. Gas prices in California are currently 20 cents lower than a month ago and 17 cents lower than a year ago.
A report from 2024 highlights that California drivers rank low in gasoline consumption due to improvements in fuel efficiency. The report also suggests that federal policies, such as tariffs on crude oil, could influence gas prices more than state-level actions.
Republican lawmakers and the oil industry have contributed to speculation about impending price hikes. However, these claims have been challenged by facts.
One claim suggests that California gas prices will rise by 65 cents or more on July 1. This is false. Two changes are expected around this date: a legislatively mandated gas tax increase of 1.6 cents per gallon and updates to fuel standards potentially adding another 5 to 8 cents per gallon.
The annual inflation-based gasoline tax increase was enacted in 2017 for road repairs and approved by voters in 2018 when they rejected a repeal attempt. Changes to the state's Low Carbon Fuel Standard (LCFS), initiated under Governor Arnold Schwarzenegger, may add costs but promise long-term savings on fuel expenses.
Another claim forecasts gas prices reaching $8 per gallon next year, which has been debunked as well. This figure originates from an unscientific analysis linked to the oil industry without substantial evidence or detailed modeling support. Experts like Stanford economists predict minimal impact from recent refinery announcements.
In response to these claims, Republican lawmakers recently reiterated false information regarding California's gas prices in Congress.
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