California, one of the most expensive states in the nation for gas, is moving forward with a controversial proposal to increase gas prices by nearly 50 cents per gallon.
A preliminary report on amendments to the Low Carbon Fuel Standard (LCFS) released by the California Air Resources Board (CARB) last September included a potential price pass-through to consumers to help the state meet its clean air goals.
The report by CARB, which is responsible for stronger emissions regulations to achieve carbon neutrality by 2045, found that under the LCFS reforms enacted in 2007, gas prices would increase by an average of 47 cents per gallon by next year, 52 cents by 2026, and then 66 cents every two years.
Longer-term projections also show gas prices could potentially increase by an average of $1.15 per gallon and $1.50 per gallon for diesel fuel from 2031 to 2046, the report said.
CARB was scheduled to hold a hearing on the revisions in March but decided to postpone it for further discussion, saying it “continues to receive significant feedback on the proposed regulatory package.”
In the wake of the news, California State Senator Janet Nguyen became a vocal critic in the legislature, characterizing the proposed increase as a “secret” tax hike that would cause financial hardship for most residents.
In an interview with Fox News, Nguyen said, “Astronomical taxes and prices are pushing people out of California. They’re paying rent on credit cards. Now the state is adding a 47-cent secret tax to the price of gas that will cost consumers more than $6 per gallon.”
“The middle- and low-income cannot afford gas to get to school, work, grocery, or the doctor. No one knows about the proposed increase. People think it’s just a tax and don’t know the difference between a carbon tax and a state tax. It’s like a tax on a tax,” she said.
As California phases out gas cars and will mandate 100% electric vehicles by 2035, Nguyen pointed out that this increase is a “punishment” for the majority of Californians who cannot afford an electric vehicle.
Meanwhile, the state gas tax in California is currently 57.9 cents per gallon and will increase to 59.6 cents per gallon starting July 1 to adjust for inflation.
BY NAKI PARK, HOONSIK WOO [park.naki@koreadaily.com]
