Californians need to make $1,000 more next year to keep up with 2025 gas prices: Study

Californians driving gas-powered cars will need to make up to an additional $1,000 a year in pre-tax income if they want to keep up with the projected 2025 gas prices in the state, according to a new study published at USC.

According to USC professor Michael A. Mische, of Marshall School of Business, his research states as California is expected to see a spike in gas prices for 2025, when the state begins requiring gas stations to carry a more expensive blend fuel that is approved by the California Air Resources Board (CARB). 

While Mische links back to CARB’s claims, saying the new special blend would increase gas price by $0.47 a gallon, a different study referenced by the USC professor claims retail gas prices may go up by $0.65 a gallon in 2025 and up $0.85 a gallon in 2030.

These changes could cost drivers in California an extra $222 to $449 a year for regular fuel, more for premium, Mische’s study reads. Bottom line: Californians relying on fueling their vehicles with gas will need to make an extra $600 or a grand just to break even for 2025.

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The expected increase in California’s gas prices come as part of CARB’s push for requiring gas stations to carry a special blend of fuel that meets the board’s "low carbon fuel standard."