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California’s Gas Excise Tax Rises to 63.4 Cents on July 1

The automatic 2.2¢ increase preserves revenue for road and highway repairs at the cost of higher pump prices.

Overview

  • California’s state gasoline excise tax will increase by 2.2 cents Wednesday, July 1, bringing the state levy to 63.4 cents per gallon under the inflation‑linked formula set by 2017 law.
  • The change applies only to the state excise tax and does not affect the federal gas tax or the sales taxes and local fees already folded into retail pump prices.
  • Republican members of California’s congressional delegation, led by Rep. David Valadao, have urged Gov. Gavin Newsom to suspend the hike, while Newsom’s office argues a pause would jeopardize road‑repair funding and would not guarantee lower retail prices.
  • Motorists face the increase on top of already high statewide averages near $5.5 per gallon and recent in‑state refinery closures that have reduced refining capacity and increased reliance on out‑of‑state and imported fuel.
  • Officials warn that accelerating electric vehicle adoption—nearly 23% of new car sales—will push down future gas‑tax revenue and intensify debates over alternative road‑funding options such as mileage‑based fees.