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California Gas Tax Hikes, Drivers Stressed; Costco Opens Cheap Station

6/30/2026

49 10 Full Breakdown

Summary

Story summary

California’s gas tax will rise 2.2 cents per gallon on July 1, 2026, to 63.4 cents under Senate Bill 1, raising $3.2 billion for road projects.
AAA reports gas prices fell to $5.52 in San Diego and $5.46 statewide, 50 cents lower, drivers fearing the added tax will strain budgets and prompting travel cuts.
Costco opened its first standalone U.S. gas station in Mission Viejo, selling gasoline at $4.79 per gallon.

History

Historical Context

In April 1990 Governor Pete Wilson signed a 13.5-cent-per-gallon gasoline excise increase, California’s first statewide fuel tax hike in decades, raising $1.5 billion for highways. The move foreshadowed later measures such as the 2017 Road Repair and Accountability Act’s 12-cent increase and the 2026 Senate Bill 1 proposal for $3.2 billion, reflecting a long-standing reliance on fuel taxes amid stagnant rates (e.g., $0.71/gal in 2025).

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Story summary

California’s gas tax will rise 2.2 cents per gallon on July 1, 2026, to 63.4 cents under Senate Bill 1, raising $3.2 billion for road projects.
AAA reports gas prices fell to $5.52 in San Diego and $5.46 statewide, 50 cents lower, drivers fearing the added tax will strain budgets and prompting travel cuts.
Costco opened its first standalone U.S. gas station in Mission Viejo, selling gasoline at $4.79 per gallon.

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