California gas prices increasing July 1: What to know
Gas prices to increase in California tomorrow
Despite these upcoming increases, California gas prices are currently 20 cents per gallon lower than they were at this time last year.
LOS ANGELES - California drivers are set to experience a 1.6-cent increase in gas prices per gallon starting July 1, as the state implements its annual gas tax adjustment.
What we know:
On July 1, prices at the pump in California will increase by almost two cents a gallon due to the state's annual gas tax adjustment.
This increase is part of the yearly excise tax, which is allocated for road and highway repairs.
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The average household is expected to pay about $16 more each year as a direct result of this tax.
Additionally, changes to the state’s Low Carbon Fuel Standard (LCFS) – which is not a tax – will also go into effect on July 1, according to the Office of Governor Gavin Newsom. Experts at UC Davis estimate this program could add between 5 and 8 cents per gallon – which they say is well below an extreme projection that showed 65 cents.
Newsom's office released a Fact check: Claims swirling on California gas prices fact sheet, which they say is to address rumors of a major gas spike.
"There are many disingenuous claims swirling about California gas prices "set to soar" – the truth is that gas prices won’t come anywhere close to increasing by 65 cents, as many would have you believe. Driven by misinformation pushed by Republican lawmakers and the oil industry, there remains a lot of speculation about California gas prices," the statement read.
By the numbers:
Overall, total gas taxes in California now amount to over $600 per year for the average household.
An energy industry expert emphasized that "those two pennies from the gas tax really add up over the course of a year."
Despite the upcoming increases, AAA reports that California gas prices are currently 20 cents a gallon lower than they were at this time last year, offering a bit of good news for drivers ahead of the Fourth of July holiday.
This development coincides with rising concerns about higher gas prices nationwide due to the crisis in the Middle East.
The Source: The information in this article is based on publicly announced state tax adjustments, projections from experts regarding household costs and future incentives, and gas price data reported by AAA. We also included a direct quote from an energy industry expert and a statement from the Office of Governor Gavin Newsom.