California Gas Tax 2022

The cost of gas has become something that bats the eye across the country, and it’s no different in California. In fact, California has the highest average gas prices. Some of this is because of taxes; some are due to other factors, such as geography. 

While California will remain at the top for being the state with the highest gas prices, the gas tax is also one of the highest. 

What is the California gas tax?

California state has a 51.1 cent tax per gallon of gas. 

However, this isn’t the highest in the country – the honor goes to Pennsylvania with 58.7 cents. Since Pennsylvania’s geographic location connects it to other states and has less strict requirements on gas quality, it’s more affordable than California.

There is also the carbon offset fee, which is 20 cents per gallon. Whenever a consumer gets 10 gallons of gas, the taxes and fees are about $8. Even though there isn’t a set tax rate for gas, it’s quite a lot compared to other states.

Changes could happen to these in July 2022. If there would be any changes, we’ll keep you updated.

Why is gas so expensive in California?

Other than the gas tax being one of the highest in the country, there are other reasons why gas is so expensive in California.

A major reason for this is the Cap and Trade Program. This requires big greenhouse gas emitters like the refineries to purchase carbon credits. As a result, the extra cost gets projected to consumers. 

Additionally, there are also strict requirements on gas stations to sell only specific blends of gas so that the pollution is minimized. Although this brings quality, it still adds to the cost. 

California current gas prices

DieselPremiumNormalMid-Grade
$5.019$5.058$4.736$4.928

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