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Starting Tuesday, California drivers will pay around two cents or more per gallon at gas stations across the state.
Gas prices will rise from 59.6 cents to 61.2 cents as part of an annual adjustment to inflation. Gas tax, established in 2017, helps you pay for road repairs.
However, drivers may also start paying more than two extra cents at the pump, as stricter environmental fuel standards will also be in effect Tuesday.
The California Air Resources Commission’s low-carbon fuel standard requires a decrease in the carbon strength of a gas each year. The new amendments passed last fall focus on investments in cleaner fuel and increased transport.
Concerns are growing statewide about how much these new low-carbon standards will affect driver wallets.
Republicans have been harshly criticizing the new costs that could be imposed by fuel standards. A June 23 letter signed by a Republican representative in California, led by Republican Rep. David Valadao, urged Birdom to suspend state gas costs.
A change.org petition from Republican state Sen. Brian Jones seeking to abolish “gas hiking” has earned more than 39,000 signatures Monday afternoon.
“It’s time for Sacramento Governor Newsom and the democratic majority to finally suspend the gas tax, stop these harmful prices hikes and ease the burden on working families instead of adding them,” Baradao said in a June 24 release.
A study by the University of Pennsylvania found that gas prices could skyrocket to 65 cents, with a price of 85 cents in 2030 if the program’s carbon reduction credits reached its highest level.
However, researchers at UC Davis disagree, claiming that the standard only adds between 5 and 8 cents per gallon.
Gov. Gavin Newsom’s Office announced its “Fact Check” on Wednesday. It argues that speculations about gas prices are “driven by misinformation driven by Republican lawmakers and the oil industry.” The governor’s office argues that UPenn’s research is “extreme predictions.”
Newsom’s Office said the Republican letter “reflected false claims.” Wednesday’s fact check included images of text with red font corrections and edits.
Fact: There will be no 65 cent gas tax starting this week.
Gas tax has increased by 1.6 cents. It was approved by Congress in 2017 and in 2018 before California voters took office. https://t.co/5pwqosnqbt
– Governor Newsom Press Office (@govpressoffice) June 30, 2025
The fact-check also responded to reports that gas prices could reach $8 by next year. The governor’s office said the forecast “derives from an unscientific analysis in which the author is closely linked to the oil industry and is involved in payroll in the Kingdom of Saudi Arabia.”
“Implementing the July 1 effective date for LCFS provides important certainty not only for the LCFS credit market but also the industry,” said Liane Randolph, chairman of the California Air Resources Committee, in a June 27 release. “But what is often lost in the noise around this program is improving Californians, our economic and environmental health and achieving the necessary state and federal air quality standards.
According to AAA data, the average gas price in Los Angeles is about 19 cents lower than this time last year. In California, average prices have fallen about 20 cents compared to last year.
In 2024, California ranked the highest in the country in gas tax rates, according to the Tax Foundation.
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