California drivers will see higher gas prices starting July 1, as two state policies take effect.First, the state's gas excise tax will increase from 59.6 cents to 61.2 cents per gallon, part of an annual adjustment for inflation.

Many Californians are confused by how much more they will be paying at the pump come July 1. Starting July 1, the state excise tax for gas will increase by 2 cents, going from about 59 cents to 61 cents per gallon.

The average fuel price in state declined about 18 cents since last month. According to the EIA, gas prices across the state in the last year have been as low as $4.09 on Dec. 23, 2024, and as high as $4.73 on April 7, 2025. A year ago, the average gas price in California was 1% higher at $4.49 per gallon.