Skip to main content

LAO confirms California gas price hike

Hydrocarbon Engineering,

The Legislative Analyst’s Office (LAO) has confirmed that California gas prices will rise dramatically from 1 January 2015. The analysis of the impact of Fuels Under the Cap was conducted in response to a request by Assembly Member Henry Perea.

Perea commissioned the study to show the legislature the direct impact Fuels Under the Cap will have on Californian drivers, especially low-income and disadvantaged communities.

According to the LAO, retail gas price will increase 13 – 20 cents/gal. as a result of the California Air Resource Board (CARB) addition of transportation fuels to existing cap-and-trade regulations. The result is a hidden gas tax that could raise gas prices by ore than 50 cents/gal. by 2020.

Jay McKeeman, of the Fed Up at the Pump coalition, commented: “The LAO’s research confirms what we’ve been saying all along. CARB has added the Fuels Under the Cap portion of existing cap-and-trade regulations to price Californians out of driving. Even worse, they are doing nothing to educate the public about this hidden tax.

“The increase in gas prices will harm small business owners, farmers, churches, community organisations and California’s disadvantaged already displaced drought and recession. A major increase in gas and diesel prices will have a ripple effect on the cost-of-living for millions of Californians, and those who can least afford it will end up paying the most”.

Perea said: “There is widespread agreement that including transportation fuels in the Cap-and-Trade program will increase the retail price of gasoline. This is why I authored Assembly Bill (AB) 69 – so the California Air Resources Board (CARB) and the Legislature can have a practical policy debate and explore ways to provide relief to consumers who can’t afford gas hikes”.

Adapted from a press release by Emma McAleavey.

Read the article online at:


Embed article link: (copy the HTML code below):