California gas prices rise 2 cents a gallon based on CPI

ByABC7.com staff KABC logo
Monday, July 1, 2024
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California's inflation-based gas hike takes effect
California's inflation-based gas hike takes effectThe tax on gasoline in California went up by 2 cents a gallon on July 1 based on annual adjustments linked to the Consumer Price Index.

LOS ANGELES (KABC) -- California gas prices are rising due to an annual tax increase that took effect Monday.

The state's gas tax is going up by two cents, increasing to 60 cents per gallon. So, drivers filling up a 12-gallon tank will spend about an extra quarter.

California's gas tax rises annually based on the Consumer Price Index. It is the highest of all states, surpassing Illinois, Pennsylvania and Indiana, according to the Tax Foundation.

According to CalTrans, the excise tax pays for 80% of highway and road repairs.

Some Republican legislators were speaking out about the change, saying the tax has become too much for drivers to bear.

"In what is now a tradition in Gavin Newsom's California, today marks yet another July 1 increase to our state gas tax," Rep. Michelle Steel, R-Cypress, posted on X. "Californians are suffering enough under Biden and Newsom's inflation. Now, their tax hikes are making it unaffordable to drive."

On average, Californians pay roughly $300 a year in state gas taxes.

Gas prices have slowly decreased, averaging about $4.78 a gallon in L.A. County. But the Auto Club expects prices to increase for the July 4th holiday.

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