Increased Tax Rate Makes California Gas Highest in US

Published on July 16, 2024

Drivers in California are paying the highest prices in the nation for gas this summer by nearly 6 cents after a higher gas tax went into effect earlier this month. The extra 2 cents per gallon added July 1 was announced earlier this year by the California Department of Tax and Fee Administration. The department is required to adjust the gas and diesel fuel tax rates on July 1 each year, based on inflation. For diesel, the state’s tax rose from 44.1 cents a gallon to 45.4 cents. In all, the state charges about 60 cents a gallon now, which bumps up the already high cost state consumers pay at the pump during summer months, when gas stations are required to sell a special eco-friendly summer blend....