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Sunday, December 22, 2024

California faces potential gas price hikes due to regulatory changes

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State Senator Brian Jones, District 40 | Official U.S. Senate headshot

State Senator Brian Jones, District 40 | Official U.S. Senate headshot

Senate Minority Leader Brian W. Jones of San Diego has issued a warning to Californians about potential increases in gas prices in 2025. A study by the Marshall School of Business at the University of Southern California (USC) suggests that prices could rise by up to 90 cents per gallon.

Jones expressed his concerns, stating, “I’m concerned Californians will face major sticker shock and be unprepared for the rapid gas price spike in 2025, which could be an additional 90 cents per gallon, thanks to Gavin Newsom’s political agenda to drive up gas prices and force Californians into electric vehicles.” He advised families with two drivers to prepare for an extra $900 expense on gasoline next year.

The USC study attributes this potential increase to several factors: a new regulation from the California Air Resources Board on Low Carbon Fuel Standard contributing 65 cents per gallon; AB2x-1 requiring oil refiners to maintain gasoline stockpiles adding between 4.7 and 27 cents; the closure of Phillips 66 refinery reducing capacity by 8.3% resulting in an increase of 8.2 to 14 cents; and an automatic hike in California’s gasoline excise tax adding nearly two cents.

Jones criticized Governor Gavin Newsom's policies, claiming they are harmful to Californians and their economy. He announced plans to introduce legislation aimed at repealing the new LCFS regulation and its associated price hike when the legislative session begins.

The study indicates that Californians driving gas-powered vehicles may need an additional $600-$1,000 annually in pre-tax income just to match current fuel costs. This news coincides with Governor Newsom's recent purchase of a $9.1 million mansion in Marin County, which Jones used as a point of criticism.

“Newsom is completely out of touch," said Jones, referring to Newsom's purchase and lifestyle choices amidst rising costs for average citizens. "Californians deserve a governor who understands their struggles—not a coastal elitist, disconnected from reality.”

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