Posted on 07/02/2025 11:36:09 AM PDT by MinorityRepublican
California’s excise gas tax will increase 1.6 cents per gallon on July 1 as the office of Gov. Gavin Newsom attempts to correct “disingenuous claims” about gas price spikes in the state.
The excise tax rate per gallon will be 61.2 cents, an increase from its previous rate of 59.6 cents since last July. These rates are based on the percentage change in the California Consumer Price Index, according to the California Department of Tax and Fee Administration, which measures inflation.
Excise taxes are commonly passed on to consumers in the price of the product, according to Reuters.
As the increase in the excise gas tax takes effect comes a separate change related to California’s Low Carbon Fuel Standard. But it’s a specific claim tied to the Low Carbon Fuel Standard that Newsom’s office is calling “false” in a recent fact sheet: Gas prices will go up 65 cents or higher on July 1.
Figures from various experts and reports have floated around in the past several months over how the amended Low Carbon Fuel Standard regulation could result in an increase in gas prices per gallon in the future, from increases of 65 cents, 17 to 23 cents, 47 cents and 5 to 8 cents.
The Low Carbon Fuel Standard “reduces air pollution and greenhouse gas emissions by setting a declining target for the carbon in transportation fuels used in California,” said the California Air Resources Board. “Producers that don’t meet established benchmarks buy credits from those that do.”
The new rules begin July 1 and “ratchet up requirements for cleaner fuels and broaden a $2 billion credit market aimed at cutting emissions from cars, trucks and freight,” Cal Matters reported.
(Excerpt) Read more at desertsun.com ...
Welcome to California.
California is the only state buying MidEast oil because they won’t build a pipeline to Texas. There is not enough rail capacity to ship much by train.
For that reason and their idiotic on refining, California pays more and risk price shocks and shortages.
Welcome to California.
but cuz of the price of gas...you can never leave.
How about a road fee (based on mileage) for EVs...they’re part of the “cost of roads” equation..
No surprise that the article glosses over any real explanation of why the 65 cent increase is unlikely, or why the state can claim it’s not a tax.
If I’m not mistaken California majority voters approve the gas tax hike in 2018 which also gave the pols in Sacto power to raise rates in the future. Well here we are. Seems like the voters took the bait with some sales pitch about the wonderful benefits the extra taxes from gas hikes would benefit their leftist government would render to them.
California Air Resources Board.
California surely needs to go on a low CARB diet!
That's a lie. Sellers of distillate fuels will try to pass the tax on to consumers, the exact amount of that price increase will vary. However, it is dead certain that the tax will raise the price. Anyone saying otherwise is lying.
To sustain present inefficiencies in delivering tax payer funded services with businesses and individuals fleeing California we have to charge more. It’s really that simple.
Taxes and Regulations
Good idea. Or a similar idea but perhaps easier to implement is an annual state EV fee based on average mileage. For example, Alabama has an annual EV fee built into the car tag renewal. At first it was a flat $200/year fee, but this year it's built into the coefficient multiplied by the value of the car (an "EV rate" vs a gas car rate, like the one used for calculating my gas truck renewal). That still seems to come out to about $200 more for the EV than to a comparable 3-year old gas car.
How many miles does that $200 EV fee translate to? In Alabama the gas tax is 30 cents per gallon. (State tax only, not federal gas tax.) $200 / 30 cents = 667 gallons of gas tax. Times 20 miles per gallon (realistic mpg with running the A/C and every now and then driving highway speeds in a 3-year-old gas car) means 13K miles of gas taxes to equal the $200 EV fee. That seems about fair IMHO.
The same CA voters took the bait for new water projects that did not get built.
The same CA voters took the bait for “high speed rail” that will never run.
You’d think CA voters would wise-up some day, wouldn’t you?
The definition of insanity (leftard Ca style) to your post.
$8 gal soon
Got to keep that poverty level at the highest in the country. Tax the producers, give the money to non-producers so they can keep dying from drugs and crime.
calif has lots of oil off shore and in the ground, mixed with mexican oil to be refined here in calif and some is shipped to AZ and NV.
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