Gas price hike rejected, Fresno councilmembers celebrate

FRESNO, Calif. (KSEE/KGPE) – Gas prices in the Central Valley have been climbing at a dramatic rate since the start of the new year – but, on Monday, Fresno councilmembers celebrated after announcing that a proposal set to make them climb even further was shot down.

“I commend the Office of Administrative Law for standing with California’s residents and rejecting CARB’s proposed fuel price hike,” Fresno Councilmember Annalisa Perea said. “The rising cost of living is already a major challenge for many Californians. A clean energy transition must be both environmentally responsible and economically sustainable.”

Gas taxes in California are among the priciest in the nation, and that is partially because of the Low Carbon Fuel Standard (LCFS), implemented in 2011.

The LCFS requires that the carbon intensity of fuels sold to decline every year until 2030. It is beneficial to the environment and could be neutral for everyone’s wallet – if the target is always met.

When the fuel’s carbon intensity score is higher than the program’s yearly policy target, prices go up; and as this target shrinks annually, it becomes more difficult to reach, turning fear of price hikes into a reality.

Last November, councilmembers said 2025’s goal could increase between 47 and 85 cents per gallon. They argued that the move was not equitable and asked the California Air Resources Board (CARB) to postpone its scheduled vote on the LCFS to allow for further analysis of the financial implications for working families.

On Monday their work paid off, and the California Office of Administrative Law rejected CARB’s proposal to increase fuel prices.

“While I strongly support efforts to advance clean energy and environmental sustainability, we
must ensure that these policies do not come at the expense of hardworking families and small businesses,” Perea said. “We can and must pursue a cleaner future without imposing
crushing financial burdens on those we serve.”