California, October 13, 2025
News Summary
California is bracing for an increase in gas prices on July 1, 2024, with an added gas tax of 1.6 cents per gallon and stricter air quality regulations. Average yearly gas taxes for households will soar above $600, and Governor Newsom’s office has clarified misinformation about future price spikes. While current prices in the Los Angeles area are lower compared to last year, projections suggest more increases on the horizon due to state tax and environmental regulations.
California is set to see a rise in gas prices effective July 1, 2024, as the state’s gas tax will increase by 1.6 cents per gallon, part of an annual adjustment. This increment means that total gas taxes in California will now exceed $600 per year for the average household. In addition to the tax increase, stricter air quality regulations will also come into effect next week, which are projected to add approximately 5 to 8 cents per gallon to gas prices.
Currently, the average price for a gallon of regular unleaded gasoline in the Los Angeles – Long Beach area stands at $4.61, a decrease of 18 cents compared to last year. Governor Gavin Newsom’s office has addressed circulating misinformation about potential gas prices rising to $8 per gallon by 2026, clarifying that the state’s current gas tax rate, the highest in the country, is approximately 59 cents per gallon. This rate will increase to 61.2 cents per gallon starting next week. Additionally, the tax on diesel fuel will rise from 45.4 cents to 46.6 cents per gallon.
According to Caltrans, gas-powered vehicles in California contribute around $300 a year in state gas taxes. However, legislative analysts project that gas tax revenue will decline by $5 billion, or 64%, by 2035 due to the growing market share of zero-emission vehicles. As part of a long-term strategy, California aims to phase out gas taxes in favor of a California Road Charge that would assess drivers based on mileage rather than the volume of gas consumed. A pilot program testing this road charge system commenced in August 2024 and concluded in January, with results expected later this year.
Motor fuel taxes have historically constituted a vital section of transportation revenue but have dropped from accounting for 41% in fiscal year 2016 to about 36% in fiscal year 2024. Both California and Oregon have set ambitious goals for reducing environmental impact, with plans for all new passenger cars sold to be zero-emission vehicles by 2035. The California Air Resources Board (CARB) has also approved amendments to the Low Carbon Fuel Standard program in 2024, aiming to foster lower-carbon fuels, thereby incurring expected increases at the pump.
Prior estimates suggested that amendments could lead to gasoline prices rising by an additional 47 cents per gallon. However, this was later revised downward. Recent increases in gas prices are also occurring amid fluctuating global oil prices influenced by geopolitical tensions and changes in domestic supply. At this moment, California’s current gas prices are 20 cents per gallon lower than at the same time last year, offering some relief to consumers ahead of the summer holiday season.
An expert forecast indicates that gas prices could rise from the Low Carbon Fuel Standard by as much as 65 cents in the near term, potentially escalating to $1.50 by 2035; however, CARB disputed these severe projections.
FAQ
What is the new gas tax rate in California starting July 1, 2024?
California’s gas tax will increase to 61.2 cents per gallon starting July 1, 2024.
How much will the average household pay in gas taxes per year?
The total gas taxes in California will exceed $600 per year for the average household.
What is the current average price of gas in the Los Angeles area?
The average price for a gallon of regular unleaded in the Los Angeles – Long Beach area is currently $4.61.
What future plans does California have regarding gas taxes?
California aims to phase out gas taxes in favor of a California Road Charge that would charge drivers based on mileage instead of gallons used.
Key Features of the California Gas Price Changes
| Feature | Details |
|---|---|
| New Gas Tax Rate | 61.2 cents per gallon (up from 59 cents) |
| Annual Gas Tax Increase | 1.6 cents per gallon |
| Stricter Air Quality Regulations | Additional 5 to 8 cents per gallon |
| Average Gas Price | $4.61 per gallon (Los Angeles – Long Beach area) |
| Projected Revenue Decline | $5 billion decrease (64%) by 2035 |
Deeper Dive: News & Info About This Topic
- ABC7: California Looks to Eliminate Gas Tax
- LA Times: Visit to the Gas Pump Could Cost You More in July
- NBC Los Angeles: Gas Prices Rise on July 1
- KTLA: Filling Up Will Cost More Starting Tuesday
- Politico: Newsom’s California Fuel Standards and Prices
- Google Search: California Gas Tax
- Wikipedia: Gasoline
- Encyclopedia Britannica: Gas Tax
- Google Scholar: California Gas Prices
- Google News: California Gas Tax News
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like 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 drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
