California gas tax increases to two cents

Sacramento, Calif. (KION-TV) -- The Western States Petroleum Association published an infographic last month outlining the state's expected increase in certain fuel-related taxes starting July 1.

According to the information presented (gathered from the U.S. Energy Information Administration and the California Department of Tax and Fee Administration in March 2024), current state excise taxes will rise from its 57.9 cents to 59.6 cents per gallon. Diesel fuel excise taxes will raise 1.3 cents, from 44.1 cents to 45.4 cents per gallon.

The California Department of Tax and Fee Administration released a statement and breakdown of the tax increase last month, stating; "We are required to adjust the motor vehicle fuel and diesel fuel excise tax rates on July 1 of each year, based on the percentage change in the California Consumer Price Index, as calculated by the Department of Finance."

California residents currently pay $1.35 in taxes per gallon of gas. These new rates are proposed to go into effect July 1 this year through June 30, 2025.

The current breakdown of cents per gallon of gas, is 43 percent towards state excise tax; 13 percent towards federal excise tax (.18 cents per gallon); 26 percent towards cap-and-trade (.35 cents per gallon); 1 percent towards state underground storage tax (.02 cents); and 8 percent towards low carbon fuel standards as well as state and local sales tax (.11 cents per gallon).