California Raises Gas Tax to 63.4 Cents a Gallon as Pump Prices Hover Near $6
Updated
Updated · Imperial Valley Press · Jun 20
California Raises Gas Tax to 63.4 Cents a Gallon as Pump Prices Hover Near $6
3 articles · Updated · Imperial Valley Press · Jun 20
Summary
July 1 will lift California’s gasoline excise tax to 63.4 cents per gallon, extending the state’s lead as the nation’s highest-taxed fuel market.
Senate Bill 1, passed in 2017, built in automatic annual inflation adjustments, pushing the tax from 27.8 cents to more than double that level in less than a decade.
California drivers already pay about $6.00 a gallon versus roughly $4.00 nationally, a gap legislative offices say can add about $1,500 a year for a commuter filling a 15-gallon tank weekly.
Cap-and-trade costs, the Low Carbon Fuel Standard, local sales taxes, storage rules and California’s special summer fuel blend all add to prices, while critics also blame drilling limits and refinery closures for tighter supply.
Assemblyman Jeff Gonzalez has proposed temporarily suspending the tax, while supporters say the revenue is needed for highways, bridges and transit as affordability pressure builds into the summer driving season.