California Gas Tax Set to Increase by 2.2 Cents Per Gallon on July 1

San Diego, CA, September 26, 2026 —

California drivers are set to encounter an increase in the state’s gasoline excise tax beginning July 1. The tax will rise by 2.2 cents per gallon, according to state adjustments. This change will affect consumers across California, including those in the San Diego region.

Following this adjustment, the total state excise tax on gasoline will reach 63.4 cents per gallon. This annual increase is a result of a mechanism tied to inflation, meaning the tax rate is adjusted each year to account for changes in the cost of living and economic factors.

The forthcoming tax hike comes at a time when gasoline prices in California are already among the highest in the nation. Drivers in the region have been contending with elevated fuel costs, and this additional tax is expected to further contribute to the overall expense of fueling vehicles. The specific impact on retail prices will depend on various market dynamics, including crude oil costs and refining margins.

The state excise tax is a component of the total price consumers pay at the pump, which also includes federal taxes, local taxes, and other fees. The increase on July 1 is a statutory adjustment rather than a legislative change enacted by lawmakers. The purpose of linking the tax to inflation is generally to maintain the purchasing power of the tax revenue over time, ensuring that the funds collected for specific purposes, such as infrastructure, keep pace with economic changes.

Story summarized from the original created by Adonis Albright on www.nbcsandiego.com, see more information here.