Bad news if you plan on a road trip this summer.
Gasoline prices for California pumps are likely to rise in July, the result of state sales tax rate hikes and stricter regulations on refineries to encourage them to make low-carbon fuels. Although industry experts say the exact price of gasoline is not possible next month, the overall growth could increase gasoline prices by nearly 70 cents.
In June, Californians and drivers usually see fuel prices rise in June, but demand in the oil supply market currently exceeds demand, slightly lower than in 2024, according to the American Automobile Assn.
As of Wednesday, the state’s current average was $4.64 per gallon, compared with $4.81 on the same day last year, down 17 cents.
Even as forecasters predict global oil inventories will increase over the next five months, easing pressure on oil prices, California consumers will not feel expected to continue probation next month.
On July 1, California’s gasoline and diesel excise tax will increase from its current 59.6 cents per gallon to 61.2 cents per gallon, according to the California Department of Taxation and Fees Administration. Diesel fuel will also increase from 45.4 cents per gallon to 46.6 cents.
The state adjusts its fuel tax rate based on annual finance department data and will take effect on July 1 each year.
This is not the only factor driving gasoline prices this summer.
In 2024, the California Air Resources Commission approved amendments to the state’s low-carbon fuel standard program, which established two goals in 2011: to shift the state’s fuel dependence to low-carbon fuels and help the state achieve its goal of reducing fuel use by 49% by 2045.
The approved revisions are intended to incentivize the value of low-carbon fuels and impose stricter restrictions on carbon-strength fuels, thus encouraging gasoline producers to generate less fuel.
However, the additional expenses to comply with the new regulations will be transferred to the pump driver.
Last year, Kabu estimated that the amendment could raise gasoline prices by 47 cents, or $6.4 billion a year. A few months later, the agency backed off its estimates and said it would not provide the public with revised people.
The agency had previously told The Times that no new figures are coming because “what we can do is analyze the impact on retail gasoline prices,” which analyses economic growth, job creation and public health.
Danny Cullenward, vice chairman of the California Independent Emissions Market Advisory Committee, estimates that the recent impact on the gasoline price amendment could be 65 cents a gallon this year, $0.85 a gallon by 2030, and nearly $1.50 a gallon by 2035.
The AAA said there are no estimates on how the revision of the low-carbon fuel standard plan will affect gasoline prices next month, “especially in the recent drop in oil prices.”
“If those stay low, the impact may be smaller,” said Gianella Ghiglino, a spokesman for the Southern California AAA.
Drivers will not be able to avoid the price increase of pumps in California, but there are some ways to find the cheapest gas stations.
How to find cheap gases near you
There are several apps and websites that can help you find lower prices near your travel route.
- The AAA members’ car club app shows the lowest priced gas station anywhere in the United States.
- Its app and its website Gasbuddy displays real-time pump prices near you.
- The Gas Guru app can search for gas stations by price, fuel level and distance and display prices in your area.
- MapQuest, Google Maps, and Waze have a feature that allows you to see the price of gasoline on the go.
