Last Updated on June 26, 2025 by The HD Post Staff
CALIFORNIA – Governor Gavin Newsom addressed claims that California gas prices are set to rise July 1 by 65 cents per gallon and could top $8 a gallon by next year.
“There are two separate changes to fuel prices expected on or around July 1 – a legislatively mandated and voter-approved gas tax increase of 1.6 cents and updated fuel standards that could, according to experts, translate to 5 to 8 cents,” stated the news release.
- Gas tax: California’s gasoline tax will increase by 1.6 cents per gallon, starting July 1, as required by law, according to Newsom.This annual inflation increase was enacted by the Legislature in 2017 to help pay for road repairs – and approved by voters in 2018 when they rejected a repeal attempt.
- Fuel standard: Changes to the state’s Low Carbon Fuel Standard (LCFS) – which is not a tax – have been requested to go into effect on July 1.Experts at UC Davis estimate this program, first established by Republican Governor Arnold Schwarzenegger, could add
between 5 and 8 cents per gallon – well below one projection that showed 65 cents.
Newsom said in the long term, LCFS is estimated to reduce fuel costs for Californians per mile by 42% – translating to savings of over $20 billion in gasoline costs every year by 2045.
Studies also show that LCFS credit prices have no correlation with gasoline prices.
Gas prices could top $8 a gallon by next year
Newsom’s office said the $8 a gallon number – widely reported in the media – comes from an unscientific analysis whose author has close ties with the oil industry and has been on the payroll of the Kingdom of Saudi Arabia.
“The author fails to provide evidence to support his main claim and only relies on vague references to models with no details on what those models are based on. Other experts, such as these Stanford economists, say gas price increases based on recent refinery announcements are likely to be negligible,” stated the news release.
RELATED: CA lawmaker calls Newsom’s critique of USC professor’s $8.43 gas price prediction ‘petty’
