LAS VEGAS (KTNV) — California’s push for stricter fuel standards may come with an unexpected cost for Nevadans, which relies heavily on fuel imported from California.
The California Air Resources Board recently approved new fuel standards to reduce fuel emissions by 30% by 2030.
While the changes are part of the state’s larger effort to combat climate change, the cleaner fuel technologies required could potentially drive up gas prices by 47 to 65 cents per gallon in California.
Nevada, which depends almost entirely on California for its fuel supply, is likely to feel the ripple effects.
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Patrick De Haan, head of petroleum analysis at GasBuddy, warns that the impact could extend beyond just higher prices.
“As California continues to see an increase in regulation, it could cause some refineries to close shop,” De Haan said. “Nevada and Arizona might need to incentivize building new refineries to avoid supply issues.”
Bob Santos, a former Northern California resident now living in Las Vegas, says fuel costs were a huge factor in his decision to leave the Golden State.
“That’s why I moved here,” Santos said.
He explained that while he pays about $60 per tank in Nevada, the cost is much higher whenever he returns to California.
“I think the politicians in California are mismanaging everything over there, and therefore they have to keep raising taxes on hardworking people,” Santos added, criticizing the new standards for increasing the financial burden on drivers.
Rising fuel costs are an added challenge for small businesses like JR’s J&J Mobile Detailing.
“Dealing with clients and having to raise prices, they wouldn’t understand,” said JR, the business owner, who relies on service trucks to operate.
Although Nevada’s gas prices are currently about 45 cents lower than this time last year, De Haan cautioned that the long-term effects of California’s regulations could change that trend.
As of Dec. 1, the highest gas prices in Las Vegas hit $4.09 per gallon, according to GasBuddy.
While the immediate impact of California’s new standards may not be felt in Nevada, De Haan expects prices in the state to “gradually creep up” as the phased regulations take effect.
De Haan says to avoid supply chain issues and further price hikes, Nevada may need to explore ways to increase its independence from California’s fuel supply. Whether that means building new refineries or seeking alternative solutions remains to be seen.
