California to Raise Gas Tax by 2 Cents a Gallon in July

A sign shows gasoline fuel prices at a Shell gas station in Los Angeles on Oct. 5, 2023. Patrick T. Fallon/AFP via Getty Images

Despite escalating gas prices this summer, California is raising gas taxes by another 2 cents a gallon July 1, reaching nearly 60 cents per gallon, the state announced April 30.

State drivers are paying an average $4.79 per gallon, down from $5.05 last month, according to the American Automobile Association. The national average on July 1 was $3.49.

Prices began to rise quickly after February because of shortages caused by scheduled and unscheduled maintenance at the state’s refineries and the yearly switch to eco-friendly summer blend gasoline. California drivers also pay extra for a host of taxes and climate agenda fees.

The state adds about 20 to 25 cents extra on each gallon for state-mandated summer blend gasoline. Consumers also pay federal excise tax, 27 cents a gallon for the state’s cap-and-trade program, a low-carbon fuel tax of 11 cents per gallon, about 2 cents for underground gas storage fees, and an additional 3.7 percent in state and local taxes.

The California Energy Commission is closely tracking gas prices and looking at the influence of several factors, including supply, demand, and refinery maintenance, Sandy Louey, spokeswoman for the commission, told The Epoch Times in March.

The governor’s new Division of Petroleum Market Oversight, an independent division within the energy commission, is responsible for investigating and providing oversight to the state’s petroleum industry.

The new agency was created last year after Gov. Gavin Newsom vowed to punish “Big Oil” for making record profits while the state’s high gas prices hit records in October 2022. It has yet to find or report any potential violations of the law by the petroleum industry.

For diesel, the state tax will rise from 44.1 cents a gallon to 45.4 cents, officials said.