California drivers are bracing for yet another surge in gas prices as a new wave of taxes and environmental regulations take effect on July 1 — a move expected to push prices at the pump to as much as $6 per gallon or more, with some estimates warning of spikes up to $9 in the near future.
As reported by CBS affiliate KFMB-TV in San Diego, the first increase comes from a 1.6-cent hike in the state’s gas excise tax, a routine annual adjustment.
But the larger and more immediate price pressure is coming from the Low Carbon Fuel Standard (LCFS), a regulatory framework designed to cut greenhouse gas emissions by tightening restrictions on fuel producers. The California Air Resources Board approved the updated standard last fall.
While state officials tout the LCFS as essential to meeting California’s ambitious climate goals, energy analysts and transportation advocates warn it will substantially increase fuel production costs — costs that will be passed directly to drivers.
California already has the highest gas prices in the country, owing to a combination of high state taxes, strict environmental standards, and limited refining capacity. These new measures will add further upward pressure on prices just as inflation continues to squeeze household budgets.
Behind the policy push is a broader agenda led by Governor Gavin Newsom and the Democrat-controlled state legislature. California has already mandated that all new gas-powered vehicle sales will be banned by 2035, part of an aggressive effort to transition the state to electric vehicles.
Yet despite billions in state and federal incentives, consumer demand for EVs remains underwhelming — raising concerns that the financial pain at the pump is being deliberately used as a lever to force behavior change.
Critics argue this is a top-down strategy that disproportionately hurts working- and middle-class Californians who rely on gas-powered vehicles and have limited access to EV charging infrastructure.
Meanwhile, ongoing concerns about EV affordability, range limitations, and declining resale values have kept many buyers on the sidelines.
