California drivers could see higher gas prices this summer due to a combination of rising taxes, refinery shutdowns, and uncertainty in global energy markets. Beginning July 1, the state’s gasoline excise tax will increase by two cents per gallon, while the diesel tax will rise by one cent. California adjusts its fuel taxes annually to account for inflation, and state officials say the revenue helps fund road maintenance and transportation infrastructure projects.
While experts say the tax increase alone is unlikely to cause a major jump in prices at the pump, other factors may have a greater impact. Several refinery closures and maintenance shutdowns have reduced fuel production, tightening supplies across the state. Analysts also warn that instability in global energy markets could drive prices higher. Particular concern surrounds the Strait of Hormuz, a key shipping route for the world’s oil supply, where any disruption could quickly affect fuel costs worldwide.
