California clean fuel directives will result in many job losses and will drive diesel prices to an estimated $6.69 per gallon. Consequently, this will put California’s truckers at a serious competitive disadvantage. This news comes from a recent study released by the California Trucking Association (CTA).
The CTA study is called “The Impact of the Low Carbon Fuel Standard & Cap-and-Trade Programs on California Retail Diesel Prices,” and was conducted by Stonebridge Associates, Inc. in Bethesda, Md. The consultant’s study attempts to predict the effects that the new low-carbon Californian initiatives will have on the state’s future diesel prices.
The findings predict that diesel prices will increase by $2.22 per gallon by 2020 from these new initiatives (maybe more from unrelated fuel cost factors). That’s more than a 50% price increase and would result in a whopping $6.69 per gallon.
“These higher California-only diesel costs will create a substantial cost bubble around California where inside the bubble diesel prices will be significantly higher than in the rest of the country,” the study noted.