Gas prices to increase more Thursday as new CA tax takes effect

Starting Thursday, Californians can expect a little more pain at the pump: an annual gasoline tax increase is going into effect on July 1.

It's only pennies that will be tacked on each time you fill up, but it's coming at a time that some drivers said they're already feeling a pinch in their bank accounts when they fill up their tanks.

The tax will bring Californians to about 51 cents of tax per gallon, but it's only increasing per gallon by just six-tenths of one cent.

California already has the highest taxes on gasoline in the country. The state's average price at the pumps is $4.275, according to Gas Buddy.

"There’s not much you can do; if you want to drive your car, you have to have gas," driver Martha Bolt said. "So, just have to grin and bear it."

The increase is coming due to Senate Bill 1, which was signed into law in 2017. The bill incrementally increases the fuel tax each year to help fund road and bridge repairs.

Travel experts said they're not expecting the increase to significantly impact people's wallets. "It's about 0.6 cents per gallon," said AAA spokesman Doug Shupe. "And for that typical 14-gallon size fuel tank, that means you're paying about eight cents more per fill up – so not a huge difference."

But as we head into the holiday weekend, demand on fuel is putting pressure on the price of gas. And concern is growing about how costs will affect people's decisions to travel.

"There’s a lot of folks that probably aren't going to travel, and if they do travel, they probably won't go as far as they might," Steve Reiter said.

Some are avoiding the pumps altogether, hoping to keep their tanks and their bank accounts above empty.

Petroleum experts said we could finally see prices start to level off by the fall.