Calif. gas tax set to rise on July 1, cementing highest rates in U.S.
LOS ANGELES, CALIFORNIA – JUNE 22: Gas prices are displayed at a Shell gas station on June 22, 2026 in Los Angeles, California. (Photo by Justin Sullivan/Getty Images)
OAN Staff Brooke Mallory
6:10 PM – Monday, June 29, 2026
California motorists will face another increase in expenses at the pump starting July 1, 2026, as the state’s excise tax on gasoline is scheduled for its annual upward adjustment.
Under the state’s framework, the gasoline excise tax will rise from 61.2 cents per gallon to 63.4 cents per gallon. The diesel tax will increase from 46.6 cents to 48.2 cents per gallon. California maintains the highest state fuel taxes in the country.
This incremental increase stems from the Road Repair and Accountability Act of 2017, known as Senate Bill 1. Designed to fund infrastructure repairs, highway expansions, and mass transit upgrades, SB 1 mandated that fuel taxes adjust automatically each July 1 based on changes in the California Consumer Price Index.
Since implementation, the base excise tax has more than doubled from its pre-SB 1 baseline of approximately 27.8–30 cents per gallon.
https://www.oann.com/newsroom/calif-gas-tax-set-to-rise-on-july-1-cementing-highest-rates-in-u-s/