Overview

• On July 1 California’s gas excise tax will rise from 59.6 cents to 61.2 cents per gallon and diesel from 45.4 to 46.6 cents, the annual adjustment set by the state’s tax authority.
• Amendments to the Low Carbon Fuel Standard impose stricter carbon-intensity limits on gasoline, and refiners are expected to pass compliance costs onto motorists.
• Industry forecasts indicate the combined tax and regulatory changes could add nearly 70 cents per gallon to pump prices, potentially driving the state average toward $6 or more.
• The American Automobile Association reports California’s current average price of $4.64 per gallon is down 17 cents from last year, but July’s increases threaten to erase that relief.
• Officials say the measures support California’s broader goal of cutting greenhouse-gas emissions and laying groundwork for its 2035 ban on new gas-powered vehicle sales.