By Global Desklast Updated
APGas prices spike in California, amid carbon emission. Initiatives to reduce carbon emissions, like the LCFS have only increased fuel prices (AP Photo/Nam Y. Huh)
Drivers across California are bracing for a new hit at the pumps: gas prices rise by approximately 1.6 cents per gallon today, July 1, as the state鈥檚 automatic annual gas tax increase took effect. This additional charge supports infrastructure projects, including road repairs.This increases the total excise tax to 61.2 cents per gallon. Stricter Low Carbon Fuel Standard (LCFS) rules also added 5鈥9 cents per gallon, bringing the estimated price hike to 7-10 cents overall, far below claims of a 65-cent surge. The LCFS changes require fuel suppliers to offset carbon emissions, which experts say could drive up future costs but benefit long-term emissions goals. Refinery closures are also contributing to pressure on fuel supply. Lawmakers are now pushing reforms to stabilize fuel markets and manage carbon credit pricing.Motorists in Fresno and beyond already took notice. 鈥淓verything costs more in California,鈥 said local resident Max Emberton, reflecting widespread frustration. Another driver added, 鈥淚 feel like gas prices are artificially inflated,鈥 despite broader market stability.That tax hike is just the first push, the California Air Resources Board鈥檚 Low Carbon Fuel Standard is expected to further raise costs, adding yet another layer to the final price at the curb.Live EventsMatt McClain of GasBuddy explained, 鈥淭his creates a higher price point in California than really most any other state in the United States,鈥 linking California鈥檚 reg alone to consistently steeper pump prices.Local businesses are also feeling the pinch. Scott Miller of the Fresno Chamber of Commerce warned,鈥淔or some businesses, it鈥檒l be less profit. For some, they鈥檒l be passing the cost 鈥 to their customer.鈥漌hile short-term price trends may dip slightly, ongoing regulatory fees and automatic tax escalators will likely prevent significant relief anytime soon.(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onCalifornia gas pricesgas tax increaseLow Carbon Fuel Standardfuel supply issuesCalifornia Air Resources Boardimpact on California drivers
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onCalifornia gas pricesgas tax increaseLow Carbon Fuel Standardfuel supply issuesCalifornia Air Resources Boardimpact on California drivers(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless
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