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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.
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 analysis from a USC professor.
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 of 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.
RELATED: California regulators approve climate rules that could raise gas prices significantly
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.
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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.
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- Why California gas prices could get even more expensive
- California regulators approve climate rules that could raise gas prices significantly
The expected increase in California’s gas prices comes 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."
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.