Gas prices in California avoid anticipated increase

California Governor Gavin Newsom responded to accusations of the LCFS increasing gas prices in a press release on July 3, claiming motorists in California were seeing the lowest prices in three years at the pump.

Published: August 10, 2025 6:30pm

(The Center Square) -

Californian’s gas prices have stayed roughly the same since the updated Low Carbon Fuel Standard went into effect July 1.

Before the new LCFS came into effect, groups such as the California Air Resources Board and the University of Pennsylvania Kleiman Center for Energy Policy were expecting the updated standard to increase the cost of gasoline for consumers starting on July 1.

To the surprise of many people, gas prices decreased.

California Governor Gavin Newsom responded to accusations of the LCFS increasing gas prices in a press release on July 3, claiming motorists in California were seeing the lowest prices in three years at the pump.

Anlleyn Venegas, Senior Public Affairs Specialist for AAA in San Diego, told The Center Square Thursday that gas prices are holding steady in California and AAA has been seeing prices go down this summer – an unusual occurrence.

“It is normal to see gas prices increase during the summer,” Venegas said. “During the summer we always see demand go up and with that gas prices do historically go up because there are more drivers on the road and people are taking road trips. This year, we saw that they were actually holding steady. They were actually dropping during the summer.”

Venegas also said AAA doesn’t know how or when it will see the LCFS be reflected on gas prices.

Gas Friday in California cost an average of $4.496 a gallon, more than a dollar more than the national average of $3.156, according to the AAA.

Gas in California was more expensive a month ago, as well as a year ago.

Gas a month ago in California cost an average of $4.550 a gallon, and gas a year ago even higher at an average of $4.609 a gallon.

CARB told The Center Square in a statement Friday that accusations around gas increases are just “noise.”

“Despite claims that the July 1 implementation of the LCFS amendments would dramatically raise gasoline prices, the predicted 'spike' is nowhere to be seen,” Lindsay Buckley, director of communications at CARB said. “The noise around the LCFS is confusing, but the facts show that it is just that: noise.”

Although gas prices in California escaped the anticipated increase from the LCFS, prices are still expected to rise in the future after two refineries announced they will be closing.

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