Staff Reports
California drivers woke up to some bad math this week. The state quietly filed a formal notice that the gasoline excise tax will climb to 63.4 cents per gallon on July 1. That tiny-sounding bump matters because it comes from Sacramento rules, not the global oil market or Washington — even as Governor Gavin Newsom points the finger at President Donald Trump and foreign conflicts for high pump prices.
CDTFA notice: an automatic CPI-indexed California gas tax hike
The California Department of Tax and Fee Administration published the routine special notice that sets the new excise rate. It isn’t a new law or a surprise vote. It is an automatic, CPI‑indexed adjustment written into state law that raises the tax from 61.2¢ to 63.4¢ a gallon on July 1. Voters rejected a repeal of this mechanism years ago, so the annual increase is built into the code.
Two cents today, but a habit that adds up for drivers
Yes, 2.2 cents is not dramatic by itself. But the tax is part of why Californians pay roughly $6.01 a gallon on average — far above the national average of about $4.29. Between state and local levies, regulatory costs and a thin West Coast refinery market, Sacramento’s policies keep California at the top of the price list. So while Governor Gavin Newsom blames federal policy and foreign events, the state quietly hits drivers with another tax increase they didn’t vote for this year.
Where did the gas tax money go?
Officials say the excise revenue pays for roads and infrastructure. California collects billions — roughly in the neighborhood of $13 billion a year from fuel excises — yet independent reports still rank the state poorly on road performance and cost‑effectiveness. That raises a simple question: if drivers keep paying more, why do potholes, cost overruns and slow projects persist? Assemblywoman Kate Sanchez and other lawmakers rightly point out that families need relief, not more excuses.
What should happen next
Governor Gavin Newsom has the power to put a pause on this automatic rise through his budget choices, but so far he has refused. Meanwhile, President Donald Trump is pushing to suspend the federal gas tax — a separate, imperfect tool that would only help if Congress cooperates. Californians deserve honest answers about where their money goes and real relief at the pump. The political theater of finger‑pointing is no substitute for transparency, audits and leaders willing to choose drivers over talking points.
