Garcia: California’s High Gas Prices Are a Choice – Not a Necessity


By Mike Garcia

According to AAA, the average price per gallon of gasoline in California has hit $4.66 this week, which is a staggering $1.50 more than the national average. The primary culprit? State policies. A significant portion of this price difference is due to California’s gasoline excise tax, which greatly inflates fuel costs compared to those east of the Colorado River.

As of July 1, 2025, California imposes a state excise tax of 61.2 cents per gallon. This tax is indexed to inflation and automatically increases each July unless legislative action is taken to halt it. Essentially, the state claims more than sixty cents per gallon before gas stations see any revenue.

Such a high tax rate is unusual. In neighboring Arizona, the state excise tax is only 18 cents per gallon. This 43-cent discrepancy explains why many drivers opt to fill up their tanks in places like Lake Havasu or Yuma before entering California. All motorists contribute the federal tax of 18.4 cents per gallon, but California’s hefty extra charge is a local burden.

The central concern isn’t just the high tax but its automatic annual increase. The current law adjusts the excise tax rate each July according to inflation, which led to the rise from 59.6 cents to 61.2 cents this year. Though the term “indexation” may seem technical, the outcome is straightforward: without legislative intervention, Californians face yearly hikes. For those commuting long distances, such as nurses or delivery drivers traveling from the Antelope Valley to downtown Los Angeles, these incremental costs accumulate quickly.

The real issue isn’t just how high the tax is – it’s how it’s designed to keep rising automatically. Under current law, the excise rate adjusts each July based on inflation. That’s why it rose from 59.6 cents to 61.2 cents this year. The term “Indexation” may sound technical, but the result is simple: Without a deliberate vote from the legislature, Californians pay more every year. For a nurse or delivery worker commuting from the Antelope Valley to downtown Los Angeles, those pennies add up fast.

Economists have long warned that per-gallon taxes on essentials are regressive, hitting working families hardest. Recent academic work confirms that gasoline taxes burden lower-income drivers most — long commutes, with high housing costs forcing people to drive further to work just to afford a home. The further you drive, the harder the taxes bite.

Supporters of the current system claim that high taxes are the price of good roads. But even Sacramento’s own budget analysts have noted the imbalance: According to the Legislative Analyst’s Office, every one-cent cut in the gasoline excise tax reduces state revenue by just 0.05% of total state spending — a tiny fraction of the budget. 

And what do Californians get for that money? Not much. The Reason Foundation’s latest report ranks states on 13 measurable categories — from pavement and bridges to congestion and efficiency. The results are telling: North Carolina charges about 40.3 cents per gallon and ranks first in overall highway performance; Tennessee charges about 27.4 cents and ranks fifth — both far ahead of California, which charges 61.2 cents and ranks 49th. 

Clearly, how funds are spent matters more than how much is collected. 


You May Also Like
Feds plan new Bahamas search for Lynette Hooker after GPS data allegedly torpedoes husband’s story: source

GPS Clues from Husband’s Phone Lead Authorities to Search Bahamian Waters for Missing Woman Lynette Hooker

Investigators from the United States are gearing up to search a new…
American couple's Bahamas dinghy was ill-equipped for conditions night of wife's disappearance: friend

Federal Authorities to Renew Search for Lynette Hooker in Bahamas After GPS Data Challenges Husband’s Account: Report

Federal investigators have renewed their efforts to locate a Michigan woman who…
Nebraska K9 sniffs out 525 pounds of cocaine during routine traffic stop, leading to California man's arrest

Heroic Nebraska K9 Uncovers 525 Pounds of Cocaine in Traffic Stop, Nabs California Suspect

In a striking traffic stop in Nebraska, authorities uncovered over 500 pounds…
12-year-old boy from New York dies in rafting accident on Lehigh River in Carbon County, Pennsylvania during class trip

Tragic Rafting Accident Claims Life of 12-Year-Old New York Boy on Class Trip in Pennsylvania

In a sorrowful turn of events, a young boy from New York…
Chicago Mayor Brandon Johnson bringing gifts for Pope Leo XIV on Rome trip

Chicago Mayor Brandon Johnson’s Historic Rome Visit: Special Gifts for Pope Leo XIV Unveiled

In an eagerly anticipated encounter, Chicago’s Mayor Brandon Johnson is poised to…
Cold case cracked as Illinois suspect charged in brutal 1993 killing of mother found slain in field

Justice Served: Illinois Suspect Charged in Solving the 1993 Cold Case Murder of Mother Found in Field

Three decades have passed since the tragic murder of an Illinois mother,…
US ally pledges support for Trump's push to break Iran's grip on Hormuz: 'We are ready to contribute'

Key US Ally Vows Support for Trump’s Initiative to Challenge Iran’s Control in Hormuz

The Czech Republic is stepping forward to bolster the security of the…
Repossession risks: Repo man reacts after job turns deadly in Jacksonville

Repossession Specialist Responds to Fatal Incident During Jacksonville Assignment

A tragic incident unfolded in Jacksonville when a tow truck driver was…
White House commemorates 'true patriot' Harambe on what would have been gorilla's 27th birthday in bizarre post: 'Rest easy'

White House Honors Harambe as a ‘True Patriot’ on Gorilla’s 27th Birthday with Unusual Tribute

Harambe, the gorilla whose untimely death sparked widespread online tributes, would have…
Alamo Drafthouse movie theaters spark revolt over phone policy

Alamo Drafthouse Faces Backlash as Patrons Rebel Against Strict Phone Policy

Alamo Drafthouse, a cinema chain known for its upscale theater experience, has…
Centenarians with Club 100 take tour of Obama Presidential Center ahead of June 18 opening in Jackson Park

Exclusive Sneak Peek: Centenarians from Club 100 Tour Obama Presidential Center Before Grand Opening

In Chicago, a group of remarkable women who have lived through a…
Moulton: 'We've Got to Cut Our Losses and Go Home' with Iran, Who 'Is Under Some Economic Pressure'

Moulton Advocates Strategic Withdrawal from Iran Amid Economic Pressures

During an appearance on “CNN News Central” this past Wednesday, Representative Seth…