Californians are bracing for significantly higher gasoline costs this Fourth of July holiday, with average prices reaching $5.40 per gallon as of Thursday. This represents an increase of nearly $1 from last year's average of $4.57 per gallon, according to data from the American Automobile Association.
The state's excise tax on gasoline also saw an increase on July 1, rising to 63.4 cents per gallon from 61.2 cents, per a state law mandating inflation-adjusted hikes. This places California's gas prices well above the national average of $3.84 per gallon, with only Hawaii reporting higher prices.
Drivers are expressing 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," said one driver named Zuli, who paid $60 to fill up at a Los Angeles station. "It would be helpful if it wasn’t gonna be going up all the time."
Some areas within California are experiencing even steeper prices. Mono County, near the Nevada border, reported an average of $6.70 per gallon. In the Los Angeles-Long Beach area, prices averaged $5.41 per gallon, while San Francisco residents are paying an average of $5.58.
Experts suggest that global factors, such as the war in Iran impacting oil supply, have contributed to the national price surge. However, they also point to California-specific issues, including higher-than-average taxes and fees, and state policies that may discourage domestic oil production. "When there are fewer refineries operating, that means supply is tight," AAA spokesperson Kandace Redd noted, also mentioning increased seasonal demand as a contributing factor.
California has seen record fuel costs this year, with the statewide average for diesel reaching $7.45 in late March, the highest ever recorded. Governor Gavin Newsom has attributed the spike primarily to President Trump and the conflict in Iran, stating, "For 2 years, average gas prices never reached $5/gallon … then Trump started his war with Iran with no plan — putting gas around the globe at risk!"
Thomas and Paulina, a couple traveling through several Western states, commented on the price difference, noting, "We’ve been to Utah, to Arizona, to Nevada, to Oregon and Washington, and California is the most expensive."