In 2025, drivers in California will need to make an extra $1,000 a year just to keep up with rising gas prices. This dramatic increase is linked to new regulations from the California Air Resources Board (CARB) mandating the use of a cleaner, more expensive fuel blend at gas stations.
The change could push gas prices up by as much as $0.65 per gallon next year, with projections reaching $0.85 by 2030. The impact will be felt most acutely by lower-income Californians, who will be disproportionately affected by the added financial burden.
The increase, expected to add between $222 and $449 annually for regular fuel, will drive the already high cost of living even higher. Drivers of gas-powered vehicles may need to earn up to $1,000 more in pre-tax income to maintain their fuel budgets in 2025.
As California continues to push forward with its emissions reduction goals, many residents are questioning whether they can afford to stay in the state. The looming surge in gas prices is only one piece of a larger puzzle contributing to the state’s out-migration. The question now is: how many will be priced out of the Golden State entirely?
Sources:
https://www.the-sun.com/motors/12943967/gas-prices-california-governor-gavin-newsom/amp/
https://www.msn.com/en-us/money/markets/californians-need-1000-more-to-pay-2025-gas-prices/ar-AA1uuhsJ
https://www.newsweek.com/california-2025-gas-prices-increase-1989321
https://www.foxla.com/news/californians-1000-income-2025-gas-price