Californians planning to travel for the Fourth of July holiday are facing significantly higher gasoline prices this year, with the state's average cost per gallon reaching $5.40. This represents an increase of nearly $1 compared to the $4.57 average recorded last Independence Day, according to data from the American Automobile Association.
Compounding the issue, California implemented a gas tax increase on July 1, as mandated by state law for inflation adjustments. The excise tax on gasoline rose from 61.2 cents to 63.4 cents per gallon.
These prices place California's average gasoline cost substantially above the national average of $3.84 per gallon. The state currently has the second-highest gas prices in the U.S., trailing only Hawaii, AAA reported.
Drivers have expressed frustration with the rising costs. "I felt like I was really starting to catch a breath, you know, it was going down, and I didn’t know about this," one driver identified as Zuli told The California Post after paying $60 to fill up in Los Angeles. "It would be helpful if it wasn’t gonna be going up all the time."
Some areas within California are experiencing even steeper prices. In Mono County, near the Nevada border, the average price per gallon stood at $6.70 on Thursday. In the Los Angeles-Long Beach area, prices averaged $5.41 per gallon, a nearly $1 jump from the previous year. San Francisco residents are paying an average of $5.58, up from $4.80 a year ago.
Experts suggest that global factors, including the war in Iran which has impacted oil supply, have contributed to the national surge in gas prices. However, California's specific situation is also attributed to its higher-than-average taxes and fees, as well as state policies that some argue have discouraged domestic oil production.
"When there are fewer refineries operating, that means supply is tight," AAA spokesperson Kandace Redd stated. Redd also noted that increased seasonal demand during spring and summer typically contributes to higher prices.
These combined factors have led to record fuel costs in California this year. In late March, the statewide average for diesel reached $7.45, marking the highest price ever recorded. A couple traveling through the state, Paulina and Thomas, commented on the price disparity, noting that California was the most expensive state they had visited on a recent trip that included Utah, Arizona, Nevada, and Oregon.
California Governor Gavin Newsom has frequently cited President Trump and the conflict in Iran as primary reasons for the price spike. A statement from Newsom's office indicated that average gas prices had not reached $5 per gallon for two years prior to the conflict, which "put gas around the globe at risk."