LOS ANGELES (KABC) --Gas prices are at their lowest level in nearly seven years, but they could drop even more after a state board on Tuesday lowered taxes at the pump.
The California State Board of Equalization lowered the excise tax rate for gasoline by 2.2 cents per gallon.
The current rate, effective through June 30, is 30 cents per gallon. The new rate of 27.8 cents per gallon will be effective July 1 through June 30, 2017.
The average price of gasoline in Los Angeles County is now down to $2.38 per gallon, down 47 cents in the past month, according to the Auto Club. Nationally, a gallon costs an average of $1.71, which is down 13 cents.
California raised about $5.4 billion through the excise tax rate during the last fiscal year. That money helps fund highways, roads and other transportation projects.
The latest cut is the third reduction in three years. Some critics say it would also mean millions of dollars less for road projects.