Drivers in California are expecting an even more challenging summer at the pump. Just as the holiday travel season is getting underway, the state’s recently implemented gas tax hike is expected to drive up the already exorbitant cost of fuel.
The state of California has the highest national gas prices
The state excise tax on gasoline in California went up by 1.7 cents per gallon on July 1st, from 57.9 cents to 59.6 cents. This modification, which is a component of Senate Bill 1, accounts for annual inflation rates.
The Road Repair and Accountability Act, or SB 1, was enacted into law in 2017 by Governor Jerry Brown.
The persistent conflict between the petroleum business and the political leadership in California is exemplified by this tax increase.
The state excise tax on gasoline plays a major role in driving up fuel prices in California, where they are already the highest in the nation.
As of last Friday, Orange County had an average gas price per gallon of $4.69, which is $1.19 more than the $3.50 national average, according to AAA. The average cost per gallon was $4.79 throughout the state.
California’s gas tax goes up today, based on law tying annual hikes to inflation https://t.co/HqquimS3U2
— ABC7 Eyewitness News (@ABC7) July 1, 2024
The excise tax in California is utilized to finance vital infrastructure initiatives.
Over the course of ten years, the SB 1 gas tax is expected to raise $52.4 billion, of which more than $3.2 billion will go toward funding the Road Maintenance and Rehabilitation Program.
This entails significant expenditures on culverts, bridges, and initiatives for regional organizations as well as bike and pedestrian routes.
Read Also:Â Prepare for Higher Pump Prices: Illinois Gas Tax Rise Starts Monday
As of 2020, just 67% of the state’s pavement was in satisfactory condition, making its roads among the worst in the country despite these efforts.
Numerous groups have voiced their disapproval of the most recent tax increase. Governor Gavin Newsom has been under fire from Republican leaders in particular for increasing the cost of living in the state.
🚨BREAKING: California will raise gas tax by 50 cents a gallon.
Over the next two years, as determined by the California Air Resources Board, gas prices will rise by 47 to 52 cents a gallon. This is all part of their environmental agenda, yet the media is dead silent on this.… pic.twitter.com/F7f2ZIcTzI
— Max Bonilla (@outragedteen_) July 4, 2024
But this most recent hike was required by an inflationary adjustment statute even before Newsom became governor. California drivers additionally pay a federal excise tax of 18.4 cents per gallon in addition to state charges.
All of these levies add to the state’s high gasoline prices.
Ninety percent of the money needed for highway and road repairs comes from state gas taxes, which Californians pay an average of $300 on each year.
Even though California’s gas tax hike is only 1.7 cents, drivers are already struggling to make ends meet due to the state’s highest gas costs.
Every time they fill up their tanks, drivers should expect to experience the effects of these charges as the state works to address its infrastructure problems.
