California, already home to the nation’s highest gasoline prices, is bracing for another increase starting next month due to new fuel regulations and a gas tax hike. Industry experts predict consumers could face an additional 5 to 10 cents per gallon, driven by these changes.

According to the Los Angeles Times and other media, a gas tax increase effective July 1 will raise the tax by 1.6 cents per gallon, from 59.6 cents to 61.2 cents, as part of an annual inflation adjustment. A key factor in the price hike is the California Air Resources Board (CARB)’s approval last fall of an amended Low Carbon Fuel Standard (LCFS). This standard imposes additional costs on refineries producing high-carbon fuels to encourage lower carbon intensity.

These costs are likely to be passed on to consumers. Experts estimate an indirect price increase of 40 to 65 cents per gallon depending on market conditions. Retail gasoline prices in California are expected to rise by 5 to 10 cents per gallon after July 1, though fluctuations may occur based on crude oil markets, refinery output, and distribution networks.
Currently, California’s gasoline prices are over $1 per gallon higher than the national average, the highest in the U.S. Areas with limited access to electric vehicles or public transit, which rely heavily on gasoline, face heightened concerns about the added financial burden.

According to the American Automobile Association (AAA), the average price for regular gasoline in California is $4.65 per gallon, with premium gasoline at $5.05 per gallon. Prices have been steadily rising, exacerbated by global oil price increases due to Middle East tensions, including the U.S.’s direct attack on Iran. This trend is expected to continue.
To cope, drivers, including Korean Americans, are taking steps to reduce fuel costs. Many are searching for cheaper gas stations, carpooling, or considering switching to electric or hybrid vehicles. James Jang, a commuter from Fullerton to LA’s Koreatown, said, “With gas prices nearing $5 per gallon, I feel a significant financial strain each month.

I’ve started carpooling to use the HOV lane and plan to switch to a hybrid vehicle soon.”
The regulatory changes have sparked heated political debate. Republican State Senator Brian Jones (San Diego) introduced a bill (SB 2) to block CARB’s new standards but it was defeated 10-23 in a Senate vote on June 4. Jones criticized the policy, stating, “Amid ongoing inflation, this places a heavy burden on working-class and low-income residents, especially in areas with limited public transit access.”

Democrats, however, emphasize the need for climate action. Senate Majority Leader Lena Gonzalez called the policy “essential for a sustainable future,” highlighting its role in accelerating the transition to cleaner fuels and reducing greenhouse gas emissions. CARB stated it is “monitoring potential market shocks and exploring ways to ease consumer burdens.”

While the gas tax and new regulations will take effect July 1, the price increase is expected to be less severe than earlier fears of a 65-cent-per-gallon spike reported by some media and social media. The actual retail price will depend on state and industry responses, crude oil trends, and seasonal demand, which typically rises in summer due to increased travel.

By Sehee Roh