California Gas Prices Set to Hit $6 a Gallon on July 1 Thanks to Newsom's New Tax, May Rise to $9 a Gallon

California drivers could soon pay $6 per gallon at the pump as new fuel taxes and environmental mandates take effect on July 1. The state’s green agenda is driving both prices and frustration sky-high.

Key Facts:

Starting July 1, California’s gas excise tax will rise by 1.6 cents per gallon.
New regulations under the Low Carbon Fuel Standard will further raise fuel production costs.
Combined, these changes could spike prices by up to 65 cents per gallon.
Experts predict California gas prices could soon reach $6—and possibly up to $9 per gallon.
The price hikes are tied to state efforts to phase out gas-powered vehicles by 2035.

The Rest of The Story:

Californians are bracing for another blow at the gas pump.

While a 1.6 cent increase in the state’s excise tax may sound modest, it’s just the beginning.

The bigger pressure point is a revamped Low Carbon Fuel Standard program, approved in November by California’s Air Resources Board.

The program forces gas producers to meet stricter emission targets, which drives up their operational costs—and those get passed to consumers.

KFMB-TV in San Diego reports that the full effect of these changes could push gas prices to $6 per gallon or higher.

Some industry watchers fear prices might even climb to $9, echoing past spikes during global market instability.

California already has the nation’s highest fuel prices due to its aggressive climate regulations and tax structure.

Governor Gavin Newsom, who has banned the sale of new gas-powered cars starting in 2035, has also championed EV subsidies and mandates.

But with EV sales stalling, this latest push could backfire.

Although California already has the highest gas prices in the country, Democrats decided they wanted to tax you even more at the pump. pic.twitter.com/96SVcxFtsF

— Republican State Leadership Committee (@RSLC) June 19, 2025

Commentary:

Another summer, another gas price gut punch for Californians.

It’s no mystery why the Golden State has the priciest fuel in America.

The politicians in Sacramento don’t just tax gas—they stack the taxes and then layer on a bureaucratic sundae of green regulations.

Now they’re topping it off with a “low carbon” scheme that squeezes fuel producers like lemons.

Translation? You pay more so Gavin Newsom can chase headlines about saving the planet.

This isn’t about balancing the budget or fixing roads.

It’s about forcing drivers out of their gas-powered vehicles and into electric cars—whether they want them or not.

The problem? People aren’t buying what Newsom’s selling.

Literally.

EV demand is sagging, power grids are shaky, and not everyone can afford a $50,000 Tesla just to get to work.

Here’s a tip from Economics 101: When you jack up the price of a product, people buy less of it—or go elsewhere.

Businesses already know this.

That’s why so many are packing up and heading to Texas.

Drivers are no different.

They’ll cut back, carpool, or fill up out of state if they can.

And let’s not forget the kicker: All this punishment at the pump is coming from the same government that can’t keep the lights on when summer heatwaves hit.

Sacramento’s climate crusade may look good on paper, but the real-world consequences are brutal.

This isn’t policy.

It’s punishment disguised as virtue.

The Bottom Line:

California’s July 1 gas tax hike is more than a routine increase—it’s part of a coordinated push to reshape driver behavior and energy consumption.

But with EV enthusiasm cooling and inflation still biting, the strategy risks alienating working-class families already stretched thin.

Sacramento’s green dreams are coming at a steep cost—paid at the pump.

California Gas Prices Set to Hit $6 a Gallon on July 1 Thanks to Newsom’s New Tax, May Rise to $9 a Gallon

Key Facts:

The Rest of The Story:

Commentary:

The Bottom Line:

Sign Up For The TFPP Wire Newsletter

Read Next