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USC professor 'estimates' Californians will need to make $1,000 more next year to keep up with 2025 gas prices

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Updated  November 20, 2024 4:42pm PST
Gas Prices
FOX 11

California gas prices could rise even more

On Friday, the California Air Resources Board voted to revamp its climate change program which is estimated to increase gas prices as high as 65 cents.

The Brief

    • Californians will need to make $600 to $1,000 a year in additional income if they want to keep up with projected gas prices, according to a USC professor.
    • The author of the study cited himself on how he got the above figures. The author did not explain where the estimates came from.
    • The projected price change comes as the California Air Resources Board (CARB) updated its low carbon fuel standard in the state's push to increase access to cleaner fuels.

A business professor with ties to Saudi Arabia claims 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 USC professor Michael A. Mische, of Marshall School of Business, his study states that 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 prices by $0.47 a gallon, a different study from the University of Pennsylvania claims retail gas prices may go up by $0.65 a gallon in 2025 and up $0.85 a gallon in 2030. Miche said he got the numbers – the expected price surge – off his own estimates.

These changes could cost drivers in California an extra $222 to $449 a year for regular fuel, more for premium, Mische said, using "author estimates." With the said self-estimates, he concluded that Californians relying on fueling their vehicles with gas will need to make an extra $600 or a grand just to break even for 2025.

Cleaner air rules could mean higher gas prices

Gas prices in California may soon go up dramatically, as the California Air Resources Board aims to make carbon emissions restrictions stricter.

PREVIOUS COVERAGE: 

The projected price change comes as the California Air Resources Board (CARB) updated its low carbon fuel standard in the state's push to increase access to cleaner fuels.

Below is a copy of Mische's study:

Below is more information on CARB's approved updates to the state's Low Carbon Fuel Standard:

The Source: Information used in this story came from Mische's study, "Brace for Impact… California Gasoline Prices to Spike in 2025." Mische says he got the projected gas prices for 2025 off his own estimates. The story also uses information provided by CARB on the state's push to improve access to cleaner fuels.

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