California, October 13, 2025
News Summary
California drivers will face a gas price increase effective July 1, as the gas tax rises by 1.6 cents per gallon. This adjustment draws attention to the state’s highest gas tax rate in the nation, projected to reach 61.2 cents per gallon. In addition, stricter air quality regulations may add another 5 to 8 cents per gallon. Despite these changes, Governor Gavin Newsom’s office assures that extreme gas price hikes are unlikely, even as fuel costs fluctuate amid global market tensions.
California drivers will soon see their gas prices increase due to an annual gas tax adjustment that takes effect on July 1. The California gas tax will rise by 1.6 cents per gallon, contributing to a total gas tax exceeding $600 per year for the average household. Additionally, the state’s stricter air quality regulations will potentially add an estimated 5 to 8 cents per gallon to gas prices starting next week.
As of now, the average price for a gallon of regular unleaded in the Los Angeles – Long Beach area is $4.61, which is down 18 cents compared to last year. Despite ongoing concerns about escalating prices, Governor Gavin Newsom’s office has debunked misinformation claiming that gas prices could reach $8 per gallon by 2026, ensuring residents that such extreme hikes are unlikely.
California holds the highest gas tax rate in the country at about 59 cents per gallon, which is projected to increase to 61.2 cents per gallon on July 1. The tax on diesel fuel will also see a rise from 45.4 to 46.6 cents per gallon, impacting transportation costs. Caltrans has reported that gas-powered vehicles in California contribute approximately $300 a year in state gas taxes.
Looking forward, legislative analysts anticipate a significant decline in gas tax revenue, projecting it will fall by $5 billion, or 64%, by 2035 as zero-emission vehicles increase their share in the market. This transition is part of California’s broader initiative to phase out gas taxes in favor of a California Road Charge, which would bill drivers based on mileage rather than the number of gallons consumed.
A pilot program to test the road charge system was launched in August 2024 and concluded in January, with results expected later this year. Currently, motor fuel taxes have decreased from accounting for 41% of transportation revenue in the fiscal year 2016 to approximately 36% in fiscal year 2024, indicating a gradual shift in revenue sources.
California and Oregon are both on track to ensure that all new passenger cars sold will be zero-emission vehicles by 2035. Amendments to the Low Carbon Fuel Standard program approved by the California Air Resources Board (CARB) in 2024 aim to promote lower-carbon fuels, although these changes are expected to increase costs at the pump. Initial estimates suggested that previous amendments could raise gasoline prices by as much as 47 cents per gallon, though CARB later revised these predictions.
The upcoming gas price hike occurs against a backdrop of fluctuating global oil prices, which are often influenced by geopolitical tensions and changes in domestic supply. Currently, gas prices in California are 20 cents per gallon lower than they were last year, offering some relief to motorists as the summer holiday season approaches. However, experts warn that the Low Carbon Fuel Standard could contribute increases in gas prices, with potential future hikes ranging from 65 cents in the near term to as much as $1.50 by 2035, although severe predictions have been contested by CARB.
Frequently Asked Questions
What will be the increase in California’s gas tax effective July 1?
The California gas tax will increase by 1.6 cents per gallon as part of an annual adjustment.
What is the average annual gas tax for California households?
Total gas taxes in California exceed $600 per year for the average household.
What additional costs are expected due to stricter air quality regulations?
Stricter air quality regulations will potentially add an estimated 5 to 8 cents per gallon to gas prices.
What is the current average price for gasoline in Los Angeles – Long Beach area?
The average price for a gallon of regular unleaded in the Los Angeles – Long Beach area is currently $4.61, down 18 cents compared to last year.
What is the current gas tax rate in California?
California currently has the highest gas tax rate in the country at about 59 cents per gallon, which is expected to increase to 61.2 cents per gallon on July 1.
How much will the diesel fuel tax increase?
The tax on diesel fuel will rise from 45.4 to 46.6 cents per gallon.
What is the projected trend for gas tax revenue by 2035?
Legislative analysts predict gas tax revenue will fall by $5 billion, or 64%, by 2035 as zero-emission vehicles gain market share.
| Feature | Details |
|---|---|
| Current Gas Tax Rate | 59 cents per gallon |
| Upcoming Gas Tax Rate (July 1) | 61.2 cents per gallon |
| Projected Revenue Drop by 2035 | $5 billion, or 64% |
| Estimated Additional Cost from Air Regulations | 5 to 8 cents per gallon |
| Average Price in Los Angeles – Long Beach Area | $4.61 per gallon |
Deeper Dive: News & Info About This Topic
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Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
