Are you enjoying the falling prices at the pump? Prices may be set to rise as California moves to place more restrictions on carbon emissions. California has a cap and trade program in effect that has numerous restrictions on carbon emissions but as of January 1, California’s cap and trade program expanded to include gasoline and diesel. As the umbrella of the cap and trade program widens, it will cost oil companies more money that will ultimately get passed down onto the consumer.
One of the main reasons that this expansion of cap and trade happened in California is because the state, and the nation, are steadily seeing falling prices of oil. Crude is coming it at around $53 a barrel which is a price that has not been seen since 2009. However, the new expansion of the cap and trade regulations in California could see prices rise by over ten cents per gallon as businesses cope with the change. Get more business law information by following our blog or hiring the Wade Law Group for your business law needs. Call us at (888) 909-9430 for a free consultation.