NewsNBC 7 San Diego — Local NewsJune 28, 2026San Diego
California Gas Tax Increase Starting July 1
California's state excise tax on gasoline is set to increase by 2.2 cents per gallon on July 1. This annual adjustment is part of a 2017 law that ties fuel taxes to inflation to fund state road and infrastructure projects.
Read the full story at NBC 7 San Diego — Local NewsWhy It Matters
Drivers in California will face a higher per-gallon cost for gasoline starting July 1, which impacts household transportation budgets.
Key Facts
- The state excise tax on gasoline will increase by 2.2 cents per gallon on July 1.
- The new total state excise tax rate will be 63.4 cents per gallon.
- The tax increase is mandated by 2017 legislation that ties fuel taxes to inflation.
- Revenue from the tax is designated for highway maintenance, road repairs, and transportation infrastructure.
- The average price of regular gasoline in San Diego County was approximately $5.52 as of the report date.
- The statewide average price of regular gasoline was approximately $5.46 as of the report date.
- Gas prices have decreased by roughly 50 cents over the past month.
- Zero-emission vehicles accounted for nearly 23% of new vehicle sales in California.
- California policy aims to end the sale of new gasoline-powered passenger vehicles by 2035.
- California policy aims to phase out oil extraction by 2045.
- Two oil refineries have closed in California within the past six months.
- The federal gas tax is currently 18.4 cents per gallon.
Who's Mentioned
organizationAAA“Source for statewide and regional average gas price data.”personColette Schenker“San Diego resident interviewed regarding the impact of fuel costs.”personDonald Trump“Proposed a temporary suspension of the federal gas tax.”personIrma Porter“San Diego resident interviewed regarding the impact of fuel costs.”organizationCalifornia Legislature“Passed the 2017 legislation that mandates annual inflation-based gas tax adjustm”personGavin Newsom“Governor who signed a 2020 executive order to end new gasoline-powered vehicle s”organizationCalifornia Energy Commission“Tracks zero-emission vehicle sales data.”