HomeNewsLocalCalifornia Gas Prices Set to Rise in July Due to Tax Hike

California Gas Prices Set to Rise in July Due to Tax Hike

California drivers should brace for higher gas prices starting in July, as a combination of a state sales tax increase and stricter refinery regulations are expected to push prices up. The California Air Resources Board (CARB) has approved new regulations aimed at reducing carbon emissions, which could add up to 65 cents per gallon, according to California Globe. Additionally, the excise tax on gasoline will rise from 59.6 cents to 61.2 cents per gallon.

Despite these anticipated increases, state officials argue that the actual rise in gas prices may not be as steep. The State of California refutes claims of a 65-cent increase, suggesting that the impact of the new regulations will be more modest, potentially ranging from 5 to 8 cents per gallon.

The changes are part of California’s ongoing efforts to reduce the environmental impact of transportation fuels. However, these measures have sparked debate, with critics arguing that they could harm the state’s economy by increasing costs for consumers and businesses. Senate Republican Leader Brian Jones attempted to repeal the new regulations through Senate Bill 2, but the bill was defeated in June.

In addition, California State Assemblyman Carl DeMaio, recently told John Kobylt that people should brace for gas prices to go even higher. He stated he was in a closed door meeting about the issue where it was stated that California’s oil industry is on the ‘brink of collapse,’ and that gas prices may rise as high as $10-$12 a gallon. Gov. Newsom disputes DeMaio’s comments.

You can hear John’s interview with DeMaio below.

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