California’s High Gas Prices Are a Choice – Not a Necessity – RedState
By Mike Garcia
AAA reports that California drivers are paying an average of $4.66 per gallon this week, more than $1.50 more than the national average. The main reason? State policy. California’s gasoline excise tax alone accounts for much of this difference, making fuel much more expensive west of the Colorado River.
Since July 1, 2025, Sacramento has levied 61.2 cents per gallon in state excise tax, an automatic tax indexed to inflation that increased again this summer and will continue to increase each July unless lawmakers intervene. Simply put, before a gas station makes a single penny, the state takes over sixty.
This is not normal.
Next door in Arizona, the state excise tax is 18 cents per gallon. This 43-cent gap explains why families often fuel up in Lake Havasu or Yuma before crossing to California. All drivers pay the federal tax of 18.4 cents per gallon, but California’s high premium is of local origin.
The real problem is not just the amount of the tax, but rather how it is designed to continue to increase automatically. Under current law, the excise rate adjusts each July based on inflation. That’s why it went from 59.6 cents to 61.2 cents this year. The term “indexing” may sound technical, but the bottom line is simple: Without a deliberate vote by the Legislature, Californians pay more every year. For a nurse or delivery person shuttling between the Antelope Valley and downtown Los Angeles, those pennies add up quickly.
Economists have long warned that per-gallon taxes on essential goods are regressive and hit working families hardest. Recent academic work confirms that gas taxes fall hardest on low-income drivers: long commutes, high housing costs forcing people to drive further to work, just to afford a house. The further you drive, the heavier the taxes.
Supporters of the current system claim that high taxes are the price you pay for good roads. But even budget analysts in Sacramento have noted the imbalance: According to the Legislative Analyst’s Office, each one-cent reduction in the gasoline excise tax reduces state revenue by just 0.05 percent of total state spending, a tiny fraction of the budget.
And what do Californians get for that money? Not much. The latest report from the Reason Foundation ranks states in 13 measurable categories, from roadways 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 raised.
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An America-focused energy policy should measure success by its impact on daily life – getting to work, school, church, Little League practice or just visiting family. By this standard, California’s excise policy is a failure. Automatic annual hikes make driving a luxury for many families, forcing them to travel less, skip trips or cross the border to save a few dollars — while potholes still plague Barstow and Bakersfield.
There is a better way forward. First, lawmakers should end automatic annual increases and require a “yes” vote for any future increases. Indexing allows Sacramento to avoid tough budget choices and quietly collect more money without accountability. Second, lawmakers should compare California’s rates to neighboring states. When Arizona sits at 18 cents and California sits at 61.2 cents, it’s obvious that taxpayers are being ripped off.
Californians deserve real votes that cut gas taxes – so that working families can keep more of each paycheck and mobility doesn’t become a luxury.
None of this denies that roads require funding. But California already imposes a 2.25 percent sales tax on gasoline, on top of the nation’s highest excise taxes. The question is not whether we finance infrastructure, but rather how we do it. If more revenue is truly needed, lawmakers must make their case transparently, clarify the purpose, and gain public support.
If Sacramento really wants to help working families, it should stop taxing their commute. Californians shouldn’t have to worry about having to fill up their tanks. Parliament should suspend the automatic increases and lower the rate – because a state that claims to stand up for workers should prove it at the pump.
Mike Garcia is president of the California chapter of the America First Policy Institute. He previously served in Congress, representing California’s 27th District in northern Los Angeles County.
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