Southern California drivers are experiencing the largest spike in gas prices in months, just as the summer travel season intensifies. In the Los Angeles-Long Beach area, the average price for regular gasoline rose two cents from Wednesday to Thursday, reaching $5.40 per gallon, according to AAA.
This increase follows a period of declining prices, with costs in the Los Angeles area having dropped from a high of $5.88 a month ago to just under $5.38 before the latest surge. Similarly, Orange County saw a three-cent increase Thursday, with the average price climbing to $5.29 from $5.26. A month prior, motorists in Orange County were paying an average of $5.76 per gallon.
Compared to a year ago, current prices represent a notable increase. In July of the previous year, regular gas averaged $4.55 per gallon in Los Angeles and $4.49 in Orange County.
Statewide, the average price for gasoline jumped from $5.36 to $5.83 per gallon in a single 24-hour period. This surge contrasts sharply with the national average, which stood at $3.85 per gallon on Thursday.
The recent price hike coincides with California's annual gas tax increase, which took effect on July 1. The state's gasoline excise tax rose from 61.2 cents to 63.4 cents per gallon, maintaining its position as the highest in the nation. This increase is a result of Senate Bill 1, enacted in 2017, which adjusts the gas tax annually to account for inflation. The law also includes a 12-cent increase to the base gas tax, higher diesel taxes, and increased vehicle registration fees, with revenues designated for road and transportation projects.
Despite these taxes and fees, which contribute an estimated $1.20 per gallon to the total cost of gasoline in California when including sales and climate fees, the state ranked 49th out of 50 states for highway performance in the Reason Foundation's 29th Annual Highway Report released in March. Governor Gavin Newsom and the Legislature have the authority to halt future automatic gas tax increases through new legislation.