Beginning February 1, 2025, SoCalGas residential customers will see an average rate increase of approximately 12%, or about $7.93 more on their monthly bill, compared to January 2025 peak rates. Those on the CARE program will see an 11% increase, roughly $4.35 more. Rates are driven by infrastructure upgrades and higher procurement costs.
Consolidating all the 2024 approved decisions has resulted in an increase in gas transportation and public purpose surcharge rates, effective January 1, 2025. As a result, SoCalGas's bundled residential average gas rates will increase by approximately 1 cent/therm or 0.7% from $1.82/therm to $1.83/therm.
The 2025 gas outlook points to a market rebalancing driven by surging LNG exports, especially from North America, easing global supply tightness after high spot prices in early 2025, particularly impacting Asia. Key factors shaping the year include increased LNG capacity, robust U.S. production, fluctuating storage levels (above 5-year averages initially), and regional demand influenced by weather, leading to price volatility but a gradual easing of pressure by year-end for a stronger 2026 demand outlook.
We expect the U.S. benchmark natural gas spot price at the Henry Hub to decrease about 2% to just under $3.50 per million British thermal units (MMBtu) in 2026 before rising sharply in 2027 to just under $4.60/MMBtu, according to our January Short-Term Energy Outlook (STEO).
Natural gas prices are changing all the time, but that doesn't mean your supply rate has to. If you lock in your natural gas price — especially during the colder months — you may be able to enjoy a lower and more stable supply rate that won't be affected by market prices.
In its latest short-term energy outlook, the U.S. Energy Information Administration (“EIA”) projects the natural gas spot price at $3.56 per million BTU for 2025, higher than $2.19 last year. In fact, next year, the commodity price will likely be $4.01 per million BTU, according to data from EIA.
Danny Cullenward, vice chair of the California's Independent Emissions Market Advisory Committee, estimated that near-term effects from the program amendments on gas prices could be an additional 65 cents a gallon this year, 85 cents per gallon by 2030, and nearly $1.50 per gallon by 2035.
Based on current assumptions and estimates, the result of the closing of two refineries, given static consumption (demand), the potential shortfall, as defined by the difference between California refinery production and California in-state consumption, could possibly range between 6.6 million gallons a day by calendar ...
Yes, U.S. Energy Information Administration (EIA) data from early 2025 and late 2024 projected a significant rise in natural gas prices through 2025 and 2026, moving from record lows in 2024, driven by increasing demand from LNG exports and electricity, outpacing supply growth, with forecasts showing prices stabilizing slightly in 2026 before a potential sharp jump in 2027 as LNG demand continues to surge. While some near-term factors caused recent dips, the overall trend points upward due to stronger global demand and growing export capacity.
US Retail Gas Price is at a current level of 2.907, down from 2.925 last week and down from 3.168 one year ago. This is a change of -0.62% from last week and -8.24% from one year ago. The US Retail Gas Price is the average price that retail consumers pay per gallon, for all grades and formulations.
California could soon be running short of gasoline, potentially hiking some of the highest gas prices in the country. Refineries in the state have been closing for years with two more set to shutter soon: a Los Angeles-area refinery at the end of the month and a Bay Area one in April.
The U.S. retail price for regular grade gasoline averaged $3.10 per gallon (gal) in 2025, $0.21/gal less than in 2024. This year marks the third consecutive year of declining nominal retail gasoline prices, according to data from our Gasoline and Diesel Fuel Update.
Commodity Costs
Factors that could impact your bill include the commodity cost of natural gas (also referred to as the “core procurement gas price”), seasonal variations, an increase in your natural gas appliance usage, weather conditions, and any remaining unpaid balance from prior bills.
Gasoline Car Phaseout In California
These amendments support Governor Newsom's 2020 Executive Order N-79-20 that requires all new passenger vehicles sold in California to be zero emissions by 2035. Learn more about the gas car phaseout in California.
In September 2025, the average price for regular motor gasoline was $3.17 per gallon; up 1.1% from August 2025 and down 1.5% from September 2024. By region, the average price for regular motor gasoline in September 2025 was and year-over-year change: West Coast: $4.23 (up 3.1%) Central Atlantic: $3.18 (down 2.4%)
For natural gas, which is closely tied to electricity prices, the Current Policies Scenario sees a price increase in U.S. natural gas prices from $2.20 per million British thermal units (MBtu) to $5 per MBtu in 2050.
Natural gas. On an annual basis, U.S. natural gas prices are relatively flat in 2026 before rising in 2027 as market conditions tighten.