California’s gasoline excise tax has increased to 63.4 cents per gallon, making it the highest in the nation, amid rising fuel prices and political backlash.
California’s gasoline excise tax rose by just over 2 cents per gallon on Tuesday, bringing the total state tax to 63.4 cents per gallon. This increase solidifies California’s position as having the highest state gas tax in the United States. As of the same day, the average price for a gallon of regular gasoline in California was approximately $5.41, according to the American Automobile Association (AAA).
Patrick De Haan, head of petroleum analysis at GasBuddy, commented on the situation earlier in June, stating, “California motorists have the most pain at the pump, and taxes are just one source of that underlying pain.” He noted that smaller gas tax adjustments might not be immediately noticeable at the pump.
The tax hike has drawn criticism from Republican lawmakers in California. Led by Representative David Valadao, the GOP congressional delegation is urging Governor Gavin Newsom to suspend the planned 2.2-cent-per-gallon increase. This increase would raise the state’s excise gas tax to 63.4 cents per gallon.
According to reports from Fox News, the lawmakers argue that the stated tax figure does not account for California’s sales tax and additional local fees, which can elevate the total surcharge burden to around $1.15 per gallon at the pump.
In a letter sent to Newsom, the lawmakers highlighted that the average price of gasoline in California is currently $5.58 per gallon, the highest in the nation and $1.65 above the national average. They urged the governor to prioritize sensible energy policies that would provide meaningful relief for Californians rather than further increasing the gasoline excise tax.
Governor Newsom has defended the tax increase, arguing that a temporary gas tax holiday or repeal would jeopardize the state’s road repair programs. He also attributed rising fuel prices to external factors, including President Donald Trump’s policies regarding Iran. Newsom’s office has dismissed claims that suspending the tax would lead to lower prices at the pump.
“Repealing gas taxes wouldn’t lower prices at the pump — it would hand oil companies a massive tax break with no guarantee that a single cent would be passed on to drivers,” Newsom’s office stated in a March press release.
A spokesperson for Newsom responded to the Republican delegation’s objections, emphasizing that the gas tax increase is mandated by existing law. “It’s an automatic, annual mechanism enacted in 2017 and upheld by voters in 2018 — all before Governor Newsom was elected Governor of California,” the spokesperson noted.
In addition to the tax increase, Newsom’s administration has pointed to broader economic factors affecting fuel prices. The spokesperson criticized Trump’s foreign policy, stating that it has resulted in significant additional fuel costs for Americans nationwide.
The ongoing debate over California’s gas tax reflects the complexities of energy policy and economic pressures facing residents. As lawmakers continue to push for changes, the impact of these taxes on consumers remains a contentious issue.
According to Fox News, the situation continues to evolve as both sides of the political spectrum weigh in on the implications of the tax increase.