State Senate Minority Leader Brian Jones, R-San Diego, has requested a state audit into the California Air Resources Board regarding its decision to overhaul its Low Carbon Fuel Standard program, which is expected by some to raise gasoline prices up to 65 cents per gallon when it takes effect July 1.

A separate gas excise tax increase will also take place July 1 amid possible disruptions to California’s Middle Eastern fuel supplies, which could push prices even higher for consumers during the peak summer driving season.

Compliance costs for this program could also impact fuel prices in the parts of Nevada and Arizona that rely on California refineries for fuel.

“This is the absolute worst time for Gov. Newsom to hit Californians with a double whammy at the gas pump: a 65-cent price hike through the LCFS and yet another gas tax increase,” Jones told The Center Square. “As global tensions escalate, California’s dependence on imported fuel leaves us dangerously vulnerable to even greater price spikes. And with a fifth of our in-state refining capacity set to shut down, we’ll be forced to rely even more on foreign sources.”

In 2023, California produced just 124 million barrels of oil, meeting 23.4% of state needs, while importing 15.9% from Alaska and 61% from abroad. California’s foreign oil mostly comes from Iraq and Saudi Arabia in the Middle East and Ecuador and Columbia in Latin America, making the state vulnerable to supply shocks, as may happen as a result of the ongoing Israel-Iran conflict.

More here

Tagged: Partner BACK TO HOMEPAGE