SACRAMENTO, Calif. (VVNG.com) — California drivers are paying more at the pump beginning today, July 1, as the state’s annual fuel tax adjustment took effect, increasing the gasoline excise tax by 2.2 cents per gallon.
The adjustment raises California’s gasoline excise tax from 61.2 cents to 63.4 cents per gallon. The state’s diesel excise tax also increased from 46.6 cents to 48.2 cents per gallon.
The increase is an automatic annual inflation adjustment required under Senate Bill 1 (SB 1), also known as the Road Repair and Accountability Act of 2017.
Signed into law by then-Gov. Jerry Brown, SB 1 raised fuel taxes and vehicle registration fees to generate billions of dollars annually for transportation improvements after state officials identified a significant backlog of deferred road maintenance and infrastructure repairs.
Revenue generated through SB 1 is dedicated to improving and maintaining California’s transportation system, including local streets and roads, state highways, bridges, public transit, bicycle and pedestrian infrastructure, and freight corridors. The annual inflation adjustment is intended to preserve the purchasing power of those funds as construction and maintenance costs continue to rise.
For most drivers, the tax increase alone adds about 30 cents to the cost of filling a 15-gallon gasoline tank.
As of July 1, the average price for a gallon of regular gasoline in San Bernardino County was about $5.27, according to AAA. That means the 2.2-cent-per-gallon tax increase adds roughly 33 cents to the cost of filling a typical 15-gallon tank, raising the total from about $79.02 to $79.35, assuming all other market factors remain unchanged.
Officials noted the tax adjustment is only one component of fuel prices. Retail gasoline prices can continue to fluctuate due to crude oil costs, refinery operations, supply and demand, seasonal fuel blends, and other market conditions.
The state fuel tax rates do not include federal fuel taxes or any applicable local taxes. Additional information is available through the California Department of Tax and Fee Administration.
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