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California Gas Tax

California already has the nations highest Gas tax at 51 cents per gallon.

That will soon change in July when Governor Newson increases the Gas Tax further to $53.9 cents, a 5.6% increase.

The price of gasoline in the US has increased over 76% since inauguration day January 2021 when the average price of regular gasoline was only $2.33 a gallon. Today the average price is $4.109, which is a staggering increase.

In California however it has become normal for consumers to see prices over $6 a gallon.

California Gas Tax
March 2022, Hollywood CA

The question one wonders is why ? The answer, as ever, is, the world of Politics.

To understand why Politicians are to blame we need to look at the price of barrel oil. The Presidents policy of restricting domestic supply increased the US dependance on imported oil. This restriction began well before the war in Ukraine which has certainly driven up prices. President Biden could have protected the Amercian consumer from rising prices by lifting restriction of domectic production.

The administrations war on fossil fuel is more important than the cost to Americans who were told to “pay the price”.

inflation is at a 40-year high at 8.5%. Americans are digging deep to keep thier heads about water, in additional they Califonia Gas Tax add an additional burden.

The price of a barrel of Oil has risen over 95% since President Biden came to office. January 2021 oil was $55.38 a barrel compared to todays price of $108 a barrel.

What does this mean at the pump ?

By July 2022 Californians will be paying 86c in taxes to the State and Federal government for every gallon. For diesel customers that number rises to $1.34. No wonder food prics have risen so sharply. In addition to the Calfornia Gas Tax which is per gallom based there are sales taxes which are price drive, as the price of gas increases the government gets more money.

The California legislator has shown no signs of delaying the increase in Gas Tax in July. There was a proposed bill to do just that but it did not receive the votes to move forward.

The Federal Government continues with its anti fossil fuel policy and we see no end in sight to the problems in Ukraine.

Common sense would suggest that if you lower the Gas Tax then more gallons would be sold, but with a $100 Billion surplus the California Gas Tax is not so much about raising revenue as it is about control.

The push of course is towards the EV and another major control which his the ban of new combustion engined cars in 2035.

The California Gas Tax whilst hurting the consumer has actually helped the Gas Station owner. Prices have risen so quickly that profit margins are better than ever as Gas Station owners increase margins as prices rise.


  1. Good letter Tim. I enjoyed reading it.
    Hope All is Well,