Overview
- On July 1 several states implemented legally mandated, inflation‑linked increases to their fuel excise taxes, including California’s 2.2‑cent rise that brings its gasoline levy to 63.4 cents per gallon.
- The national average pump price has fallen from spring peaks to about $3.8–$3.84 per gallon as crude eased and shipping through the Strait of Hormuz normalized.
- Prices vary sharply by region with West Coast states — notably California, Hawaii and Washington — still averaging above $5 per gallon while many Midwestern and Southern states remain near or below $3.50.
- Analysts say retailers can absorb some or all of the new tax in the short term because wholesale prices are declining, but low inventories and refinery limits leave the market vulnerable to renewed geopolitical or supply shocks.
- Drivers and rideshare workers report tighter budgets and longer hours to cover fuel costs, AAA projects record Fourth of July travel of about 72 million people, and political pressure — including calls from President Trump for retailer probes — is mounting over price movement.