California Gas Price Forecast: What to Expect in 2025

The average gas price in California today is $4.71 per gallon, down $0.08 from last week but $1.58 above the national average of $3.13. Prices vary by city, with San Francisco at $4.95/gallon and Sacramento at $4.65/gallon.

2025 Gas Price Outlook

Experts predict significant price hikes due to:

• Refinery Closures: Phillips 66 (Los Angeles) and Valero (Benicia) closures will cut 20% of California’s gas supply, potentially pushing prices to $6.43/gallon by late 2025 and $8.43/gallon by 2026 (USC study).

• Low Carbon Fuel Standard (LCFS): New regulations may add $0.47–$0.65/gallon as refiners adapt to stricter emissions rules.

• Gas Tax Increase: A 1.9-cent/gallon tax hike starts July 1, 2025, bringing the state excise tax to 59.6 cents/gallon.

How to Prepare

• Budget for Higher Costs: USC estimates drivers may need an extra $600–$1,000/year to cover gas expenses.

• Explore EVs: With California’s 2035 gas vehicle ban, electric vehicles are a long-term cost-saver.

• Stay Informed: Follow our Gas Price Tracker for daily updates and savings tips.

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