Latest news with #LCSF
Newsweek
3 days ago
- Automotive
- Newsweek
California Democrats Vote to Increase Gas Prices
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The California Senate on Wednesday rejected a measure that sought to stop gas prices rising by a projected 65 cents per gallon. Senate Bill 2 had aimed to halt proposed changes to California's Low Carbon Fuel Standard (LCFS) that were approved by the California Air Resources Board (CARB) in November. Senate Minority Leader Brian Jones, a Republican who authored the bill, forced a floor vote on the measure on Wednesday. Lawmakers rejected it in a 10-23 vote, with Democrats unanimous in their opposition. A Chevron sign at a gas station, showing California gas prices, in Walnut Creek, California, April 8, 2025. A Chevron sign at a gas station, showing California gas prices, in Walnut Creek, California, April 8, 2025. Getty Images Why It Matters A report by the University of Pennsylvania's Kleinman Center for Energy Policy predicted that the changes could increase the cost of gas by 65 cents a gallon in the near term and by 85 cents a gallon by 2030. Supporters say the new rules are necessary to keep California on track for its climate goals. But critics have warned that the new standards could raise gas prices even higher in a state where drivers already pay some of the highest fuel costs in the nation. What To Know Senate Bill 2 aimed to "void specified amendments to the Low-Carbon Fuel Standard regulations adopted by the state board on November 8, 2024, or as subsequently adopted, as specified." The proposed changes to the LCSF include updated targets to reduce the carbon intensity of transportation fuels used in California in order to reduces air pollution and greenhouse gas emissions. Jones, a Republican, accused Democrats of choosing "higher gas prices over hardworking Californians," pointing to the estimates that the updates to the LCSF will raise gas prices by as much as 65 cents per gallon. But David Clergen, a spokesperson for the California Air Resources Board, has called the 65-cent figure "misinformation," saying that independent experts estimate gas prices may rise by just 5 to 8 cents per gallon. He also told the Sacramento Bee that the LCSF does not directly add to gas prices. What People Are Saying California Senate Minority Leader Brian Jones said in a statement on Wednesday: "I forced a Senate Floor vote to repeal Governor Newsom's 65-cent gas price hike. Senate Democrats unanimously opposed it. They had a chance to stand with California drivers, but instead, they chose to defend the highest gas prices in the nation." CARB spokesperson David Clergen told the Sacramento Bee: "Independent experts have projected LCFS pass-through costs could range from as low as 5 cents per gallon to as high as 8 cents per gallon, much lower than widely reported projections that are as high as a dollar or more." He added that any additional costs "would be from oil companies passing through the cost of complying with the regulation and they would decide how much, if any of that cost to pass through to consumers." What's Next The proposed updates to the LCFS were resubmitted to the Office of Administrative Law, which reviews the legality of state regulations, on May 16, after the agency rejected the proposed changes in February. The agency has until June 30 to make a final determination and if approved, the changes could go into effect on July 1. That could come on the same day that an increase in California's state gas tax is set to take effect, rising from 59.6 to 61.2 cents per gallon.
New Straits Times
18-05-2025
- Business
- New Straits Times
Regional push for local currency trade to boost monetary sovereignty
KUALA LUMPUR: The move by Malaysia and several of its regional partners to conduct up to 20 per cent of their trade in local currencies could strengthen regional monetary sovereignty and help shield their economies from external shocks, economists said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said it makes sense for Malaysia and other countries to consider local currencies for international trade settlements. "This would insulate Malaysia and other nations from the volatility of the US dollar. We have seen how US monetary policy impacted emerging market currencies in 2022 and 2023, with the ringgit among those negatively affected," he said when contacted. He added that tariff shocks initiated by the administration of former US President Donald Trump had also sent ripple effects across global markets. "At this point, we are still unsure how future tariff negotiations will unfold. Hence, it makes sense for Malaysia to future-proof itself, and one way is through the use of local currencies for trade settlements," he said. Afzanizam added that Bank Negara Malaysia had already implemented policies to support this shift, including the Local Currency Settlement Framework (LCSF) with Indonesia and Thailand for trade using the rupiah and baht, respectively. Prime Minister Datuk Seri Anwar Ibrahim, in an exclusive interview with international broadcaster TV BRICS, said Malaysia and several regional partners are targeting to conduct up to 20 per cent of their trade in local currencies. The move, Anwar said, signalled a regional push to strengthen monetary autonomy and reduce overdependence on the US dollar. Anwar added that the move was not intended to replace the US dollar, which remains the dominant global currency, but rather to create financial buffers to safeguard national interests. Asked if the move could affect ties with the US, Afzanizam said there are always risks involved. However, the government recognises these geopolitical challenges and maintains a non-partisan stance and pointed out that Malaysia is working to resolve US trade concerns without resorting to retaliatory actions. Williams Business Consultancy Sdn Bhd director Dr Geoffrey Williams said trading in local currencies reduces transaction costs and lessens the need to hold US dollars for trade. "It also strengthens the demand for and trade liquidity of regional currencies." He, however, said the main risk is volatility between regional currencies and the need to navigate regional currency rules and capital controls, which might restrict the amount of trade allowed in individual transactions. As for ties with the US, Williams said they would not be affected. "It is just a policy to facilitate the easier use of regional currencies, and this would not affect US trades." On the Asian Monetary Fund, Williams said the idea is feasible but requires buy-in from many countries and involves both economic and geopolitical considerations. "In principle, it could act as a regional version of the International Monetary Fund, helping to stabilise financial flows and currencies. However, it seems a long way off and is not a priority for discussion at the moment." Meanwhile, Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said Trump explicitly voiced his displeasure at any attempt to replace the dollar as the global trade settlement currency. "With trade negotiations still ongoing as a result of US reciprocal tariff measures, it remains to be seen if such remarks at this critical juncture will strengthen Malaysia's hands at the negotiating table," said Oh. On April 2, the US imposed a 24 per cent retaliatory tariff on imports from Malaysia as part of a sweeping wave of trade measures announced by Trump. Among the hardest-hit nations are China, which faces a 34 per cent tariff, the European Union at 20 per cent, Vietnam at 46 per cent, Sri Lanka at 44 per cent, Cambodia at 49 per cent, Laos at 48 per cent, and Myanmar at 44 per cent. Later on April 9, Trump abruptly paused tariffs on most countries after admitting they made the markets nervous, but doubled down on a brutal trade war with superpower rival China. On April 24 to 26, the Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz led a Malaysian delegation to Washington DC, to engage in discussions with US officials regarding the imposed tariffs. The delegation met with US officials which included the US Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick. On Thursday (May 15), Tengku Zafrul said discussions between Malaysia and the US regarding reciprocal tariffs have so far proceeded smoothly, with many issues being resolved while some require further scrutiny, particularly those related to the country's strategic sectors.
