California gas prices set for another hike on July 1: ‘Ridiculous’

California drivers will soon see another increase at the pump as the state’s gasoline excise tax rises again on July 1, adding to the cost of filling up in a state already among the nation’s highest fuel prices.

The state excise tax will increase by 2.2 cents per gallon, bringing the total gas tax to 63.4 cents per gallon.

The adjustment applies only to California’s excise tax and does not include federal fuel taxes or sales taxes that are already built into the price motorists pay.

Despite fuel prices easing in recent weeks, Californians continue to pay well above the national average. According to AAA, the statewide average for a gallon of regular gasoline stood at about $5.45 on Monday.

The annual increase is required under a 2017 state law that automatically adjusts California’s gasoline tax each year to account for inflation. Revenue generated by the tax is used to pay for road maintenance, highway improvements and other transportation infrastructure projects.

For many motorists, however, the latest increase comes as families continue to grapple with higher living costs.

“I think it’s ridiculous, actually,” San Diego resident Colette Schenker told NBC7. “I work full time in the health care/social work industry and I feel like it’s challenging every week when I have to fill up my tank.

“With inflation and the cost of everything increasing, it’s really difficult when our pay kind of stays the same and everything’s just going up around us.”

Schenker said higher fuel costs have forced her to rethink how often she drives.

“I have to be careful about where I’m going and what I’m doing,” she said. “If I’m going to drive a lot more during the week, I have to cut corners and cut costs with other expenses.”

Another San Diego driver, Irma Porter, said she was surprised to learn the tax would increase again.

“Gas prices are already high enough,” Porter said. “I remember when gas was 99 cents a gallon.”

Porter estimated it now costs around $60 to fill her vehicle.

“It’s changed my lifestyle because I have less money when I keep putting gas in the car,” she said. “That’s a lot.”

She added that the money spent on fuel could instead be used to spend time with her family.

“I can do other stuff with that. Go take my grandson somewhere, have fun, Legoland or something. That’s how much money I spend on gas.”

State officials have acknowledged that gas tax revenue is expected to decline over time as more Californians switch to electric vehicles, which accounted for nearly 23% of new vehicle sales statewide, according to the California Energy Commission. Even so, the overwhelming majority of registered vehicles in California still run on gasoline.

Porter said she would consider buying an electric vehicle in the future.

“I think an electric car would be better than paying so much gas,” she said, though she noted concerns about the purchase price and repair costs.

For now, drivers like Schenker say the rising cost of fuel continues to make everyday travel more difficult.

“It’s getting so expensive to the point where it’s difficult for me and a lot of folks to leave their home and make plans and enjoy life outside of work and our home environment,” she said.

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