Why are California gas prices expected to rise again July 1? Here’s what to know

Californians soon will be paying more at the gas pump.

The state’s gas tax, already the highest in the nation, will go up by 2.2 cents per gallon July 1 under a state law requiring an annual increase, according to the California Department of Tax and Fee Administration.

Californians will pay 63.4 cents per gallon, an increase from the current 61.2 cents per gallon, for gasoline, the agency said.

Taxes on diesel fuel will go up by 1.6 cents to 48.2 cents per gallon from the current 46.6 cents per gallon.

The increases are based on the percentage change in the California Consumer Price Index, the office said.

In a 2025 news release defending the annual gas tax hike, Gov. Gavin Newsom’s office said the increase addresses inflation and was enacted by the legislature in 2017 to help pay for road repairs.

Voters rejected a repeal attempt on the tax in 2018, the office said.

The current average price per gallon for regular fuel in California is $5.993, AAA said.

This story was originally published June 3, 2026 at 1:44 PM.