Overview

• California’s excise tax on gasoline will increase by 1.6 cents per gallon starting July 1.
• The Low Carbon Fuel Standard, approved by the California Air Resources Board in November, will impose stricter emission rules on fuel producers.
• Analysts estimate the combined measures could boost the statewide average from $4.64 to as much as $6 per gallon and warn of prices climbing higher.
• California’s isolated fuel distribution network and reliance on in-state refineries heighten vulnerability to supply disruptions and price swings.
• Officials hope higher pump costs will accelerate consumer adoption of electric vehicles ahead of the 2035 ban on new gas-powered car sales.