The new California greenhouse gas rules
Experts say the lower-than-normal gas prices we’ve been saying lately are likely to climb.
Jay McKeeman with the California Independent Oil Market Association estimates prices will move up 12 to 15 cents in January. And after that?
“Estimates have been made that it could go as high as 75 cents a gallon,” he said.
Dave Clegern, with the California Air Resources Board says it’s not a tax.
“The fuel suppliers will join the other major greenhouse gas emitters under cap and trade on Jan 1, 2015,” he said.
That means fuel suppliers will have to buy carbon credits to comply with the new California greenhouse gas rules.
Right now those credits are going for roughly $12 a ton, which oil experts say will translate to at least a 12-cent hike per gallon of gas.
“We want to make sure the public understands that it’s the government, it’s the air resources board that’s putting this allocation on fuels and it’s gonna get passed down to the consumer,” McKeeman said.
