California Gas Prices Set to Rise Again as Tax Hike and Global Tensions Take Toll

It’s costing Californians more to fill up—and the pain at the pump is far from over.

Desert resident Jackie Dillon shared her frustration: “It cost me a fortune to go see my family.” Like many drivers, Dillon is feeling the squeeze as gas prices continue to inch upward.

That pressure is expected to intensify starting July 1, when California’s gasoline tax will automatically increase to account for inflation. While the hike adds just 1.6 cents per gallon, it's only part of the problem.

Industry analysts point to ongoing refinery issues across the state, including multiple fires since the start of the year, which have disrupted supply. “If a refinery goes down unexpectedly,” one analyst warned, “that can bring a very sudden jolt to gasoline supplies, especially when demand is high in summer.”

International tensions are also fueling uncertainty. With Iran—one of the world’s top oil producers—at odds with Israel, experts say any disruption in Iran’s oil infrastructure could ripple through global supply chains, raising fuel costs in the U.S.

In response, some Californians are turning to electric vehicles to save money. “Gas prices are just too high,” one EV driver told us. “That’s why I switched.” While electric vehicles offer relief from fluctuating fuel costs, they come with tradeoffs—such as longer charging times.

“You have to wait 20 to 25 minutes at a station,” the driver said, “but between the two, I’ll choose electric if I can.”

That was our Caitlyn Kelley reporting.

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