gas prices

California Gas Tax Increase Starts July 1

On July 1, California will see an increase to the current gas tax which would increase prices by almost three cents per gallon.

A fuel nozzle in a car at a Chevron gas station in Pinole, California, U.S., on Wednesday, June 22, 2022. President Joe Biden called on Congress to suspend the federal gasoline tax, a largely symbolic move by an embattled president running out of options to ease pump prices weighing on his party’s political prospects. Photographer: David Paul Morris/Bloomberg via Getty Images
David Paul Morris/Bloomberg via Getty Images

Gas prices in some areas of California are already higher than the national average, but those prices are going to go up even more with the scheduled increase in the state's gas excise tax.

On July 1, California's gas tax will increase prices at the pump by about three cents per gallon.

Politicians on both sides of the aisle have been vocal about this tax increase including Gov. Gavin Newsom who proposed suspending it earlier this year.

The money collected through the gas excise tax is one of the state's primary ways of funding different highway and road projects.

This increase comes as many Californians across the state are trying to save as much as they can, as gas prices and inflation take a toll.

Inflation saw the fastest increase since December 1981 as the consumer price index rose 8.6% compared with May a year ago.

Newsom just announced Sunday an "inflation payment" for millions of Californians. Taxpayers would receive payments of $350, $250 and $200, depending on income level. An additional payment in the same amount will be issued if there is at least one dependent.

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