California’s gas tax nightmare: Democrats force $8.44-per-gallon future on struggling families

• California Democrats approved a 50- to 65-cent gas tax increase under the Low Carbon Fuel Standard, effective July 2025, despite Republican opposition.
• Analysts warn gas prices could hit $8.44 per gallon by late 2026 due to refinery closures and regulations.
• CARB admitted it never studied the economic impact of the tax, sparking criticism from Republican leaders.
• Two major refinery closures will reduce California’s refining capacity by 20%, worsening shortages and price spikes.
• Critics argue the tax disproportionately harms working-class families while advancing radical climate policies.

In yet another assault on working-class Californians, the state’s Democratic supermajority has greenlit a staggering 50- to 65-cent gas tax increase under the Low Carbon Fuel Standard (LCFS), set to take effect July 1, 2025.

Republican efforts to block the hike failed miserably in a 18-39 Assembly vote, leaving drivers to brace for what analysts warn could be $8.44-per-gallon gasoline by late 2026. This isn’t just another tax; it’s economic sabotage disguised as environmentalism, a reckless experiment that will cripple households already drowning in the nation’s highest cost of living.

The green agenda’s hidden costs

The tax hike, approved by the California Air Resources Board (CARB), is framed as a necessary step to reduce carbon emissions. But the real agenda is clear: punish drivers, enrich bureaucrats, and force compliance with the state’s radical climate dogma. A USC analysis by Professor Michael A. Mische projects that the combined effects of refinery closures, the LCFS tax, and other regulations could spike prices by 75%, pushing the average gallon of gas to a jaw-dropping $8.44.

“The shutdown of the two California-based refineries could possibly place the Golden State in a precarious economic situation,” Mische warned, noting daily gasoline deficits of 6.6 to 13.1 million gallons. This could mean shortages, rationing, and economic chaos.

Senate Republicans, led by Sen. Brian Jones (R-San Diego), fought tooth and nail to halt the tax through Senate Bill 2 (SB 2). But Democrats, who dominate the legislature, killed the measure in a 10-23 vote. Jones blasted the decision, stating, “Senate Democrats unanimously opposed it. They had a chance to stand with California drivers, but instead, they chose to defend the highest gas prices in the nation.”

CARB’s arrogance was laid bare when Chair Liane Randolph admitted the board never studied the economic impact of the LCFS on gas prices. “That admission is stunning,” Jones said. “CARB is making billion-dollar decisions that hit every family at the pump, and they’re doing it without even asking what it will cost.”

A perfect storm of regulatory disasters

California’s gas crisis isn’t just about taxes. The pending closure of two major refineries, Phillips 66 in 2025 and Valero in 2026, will slash the state’s refining capacity by 20%. Pair that with draconian environmental rules like Cap and Trade and SBX1-2, and you’ve got a recipe for energy poverty.

CARB spokesman David Clegern downplayed the crisis, calling projections of a 65-cent hike “misinformation” and claiming costs could be as low as 5 to 8 cents per gallon. But Californians aren’t buying it. The state already pays $1.50 more per gallon than the national average, and this new tax will only deepen the pain.

Who really pays?

Those who will end up paying for this decision include the working class, small businesses, and single parents driving to work. Democrats love to preach “equity” while enacting policies that crush the very people they claim to protect. The LCFS tax isn’t about saving the planet; it’s about control. It’s about forcing Californians into expensive electric vehicles or government-dependent public transit, all while ignoring the real-world consequences: shuttered businesses, higher grocery bills, and families choosing between gas and groceries.

California’s leaders are doubling down on failure. While they virtue-signal about climate change, they ignore the economic tsunami heading for their constituents. The gas tax hike is a betrayal, a surrender to ideological extremism at the expense of common sense. As prices soar and refineries close, remember: this was a choice. And Democrats made it for you.

Sources for this article include:

ClimateDepot.com

CBS8.com

TheDeseretReview.com

SacBee.com