Trump poised to lower energy costs, but liberal policies keep them high in blue states

A professor at USC’s Marshall School of Business is warning that California drivers could face up to $1.15 per gallon more for gas in 2025 versus 2024.

That’s because a series of state government mandates will go into effect next year, including Low Carbon Fuel Standards and the passage of a state law that will increase costs for refineries. 

The net effect will be that Californians operating individual or fleet vehicles will have to earn more just to pay for the mileage they drive each year, according to an analysis by USC Professor Michael A. Mische. 

Currently, Californians are paying an average of $4.422 per gallon for gas, versus the national average of $3.047, a disparity of $1.375 over the rest of the country, according to data supplied by AAA. 

In 2025, Californians driving fossil fuel-powered vehicles will pay $600 to $1,000 more depending on the grade of gas they purchase, Mische told The Lion.  

It’s a trend that’s at odds with what’s expected for most of the rest of the country, the USC business management expert said, with President-elect Trump vowing to increase fossil fuel production. 

“The rest of the country is going to have a really nice 2025 and beyond with energy prices,” Mische added. “I think [prices are] going to come down. California is going to be left out in the lurch as the rest of the country is going to benefit from lower energy costs, lower gasoline prices.”  

And California is not the only Democrat-controlled blue state that will be feeling bluer over energy prices and tolls meant by liberals to control energy behavior.  

New York Toll 

In New York, the Metropolitan Transportation Authority approved a $9.00 toll that Democrats call “congestion pricing” for all passenger vehicles, motorcycles, trucks and non-commuter buses that enter New York City’s Manhattan starting Jan. 5.  

The move prompted one well-known New York personality to call on Trump to rescue New York from such liberal policies.  

Trump has openly opposed the congestion pricing plan that is the brainchild of Democrat New York Gov. Kathy Hochul, who originally wanted a $15 toll.  

“This is why I keep telling folks, you know, whether you voted for the person or not, when the person does something that you agree with, I’m all for it,” said radio host Charlamagne Tha God about Trump, according to the Daily Caller.  

Then the radio host appealed directly to the President-elect. 

“I don’t want these congestion prices in New York City … Do your thing, Trump. Do your thing, ” Charlamagne said.  

Illinois Falling Behind? 

In Illinois, one Republican is warning that the state, and other blue states like it that force feed climate policies, risk becoming obsolete compared to the rest of the country.  

“We are going to miss out on opportunities because we can’t supply the electricity at an affordable rate,” said State Rep. Dan Caulkins, Republican, from Decatur, according to Center Square. “And if we don’t fall in line with the rest of the country, we are going to be the rust bucket. We will continue to decline. Companies are going to leave.” 

The warning comes as Trump is poised to put a new emphasis on domestic oil and gas production that will lower prices for energy, fight inflation, create new jobs, and give the U.S. the “lowest cost of energy of any industrial country anywhere,” he has said. 

By contrast, in Illinois, and in blue states around the country, Biden’s EPA is trying to quickly disperse funds that Biden earmarked to fight “climate change,” reported Center Square.  

But Caulkins said that the $500 million in EPA funding for Illinois, which the Biden folks are quickly trying to spend, could be put to better use. 

“We need to cut our deficits and they’re going to start looking at these subsidies that only benefit a few,” Caulkins said. 

Caulkins added that states can’t force the adoption of electric vehicles (EVs).  

The Cost of EVs 

Going into 2024, there were 288.5 million vehicles operating on the road in the U.S., according to Statista.  

Of that total, just 3.3 million, or about 1%, are EVs. 

A recent report by Stanford estimates that the federal government spends $32,000 for each EV sold.  

“This policy is not a home run,” admits Hunt Allcott, a senior fellow at Stanford, who co-authored a study of EV subsidies. “While [Biden’s] electric vehicle tax credits have slowed climate change and shifted production to U.S. manufacturing firms, they also impose high costs on U.S. taxpayers.” 

And that’s the nub of the problem, USC’s Mische told The Lion.  

Fossil fuels have become so “ideological” in California, that “anything related to fossil fuel and internal combustion engines in California is bad” regardless of the costs imposed on consumers. 

“I think it’s really forcing of the consumer to change their preferences and buying patterns,” Mische said. “California is trying to regulate a change in consumer behavior and a change in how the consumer elects to allocate their own personal funds.”