State Gas Tax Increase Hits As Riverside County Gas Prices Decline

RIVERSIDE COUNTY, CA — Just as gas prices were falling in Riverside County, local drivers are now paying 2.8 cents per gallon more due to the state’s annual excise gas tax increase that hit Friday. The tax increase is just in time for Fourth of July holiday travel, which is expected to be the third busiest on record across the state.

The average price of a gallon of self-serve regular gasoline in Riverside County dropped Friday for the 16th time in 17 days, decreasing 2 cents to $6.20. The average price has dropped 13 cents over the past 17 days, including 1.1 cents Thursday, according to figures from the AAA and the Oil Price Information Service.

It's not clear whether the state gas tax increase "will create a brief increase at the pump for drivers, or if the increase will just be canceled out by the continuing drop in gas prices," said Doug Shupe, the Automobile Club of Southern California's corporate communications manager.

The average price in Riverside County is 6 cents less than one week ago but 13.7 cents more than one month ago and $1.97 higher than one year ago.

Statewide, gas stations began charging the 2.8 cents more in gas tax Friday as part of a law to automatically adjust the gasoline excise tax that passed in 2017 and was upheld by voters in 2018. California Proposition 6, the Voter Approval for Future Gas and Vehicle Taxes and 2017 Tax Repeal Initiative, was on the ballot in California as an initiated constitutional amendment on November 6, 2018. The measure was defeated with 6,952,081 no votes or 56.82 percent of those who turned out to cast a ballot. With the defeat, the state's voters kept the fuel tax increases and vehicle fees that were enacted in 2017, including the Road Repair and Accountability Act, in place and they allowed the state legislature to continue to impose, increase, or extend fuel taxes or vehicle fees through a two-thirds vote of each chamber and without voter approval.

The excise tax funds are used to pay for transportation projects and services.