This seemingly innocuous automatic inflation bump raises the excise tax from ~59.6 to ~61.2 cents per gallon. Supporters tout its necessity for road maintenance, but critics argue it’s an incremental tax on drivers who are already paying among the nation’s highest pump prices. This tax isn’t just numbers—it’s Robbing Peter (California drivers) to pay Paul (state bureaucracy), with little if any accountability for how the money is spent.

Adding additional pain is the increase in the Low-Carbon Fuel Standard (LCFS). This California voter-approved measure also kicks-in an additional 5-8 cents per gallon. Analysts including those at UC Davis, estimate the increase to be as much as 9 cents per gallon. Even the draconian California Air Resources Board (CARB) conceded that the stricter rules could raise fuel costs by hundreds of dollars annually for the typical California driver. What was pitched as “market-based” and “incentive-driven” is now a stealth tax on car owners—driving up the cost of living under the guise of climate leadership.

The final nail in the coffin is the closure of two key refineries in California, eliminating almost 20% of the state’s fuel producing capacity. Phillips 66 is shuttering its LA-area refinery by late 2025, reducing capacity by 8%. Shortly after, Valero will close its Benicia refinery by April 2026, eliminating an additional 9% of capacity. With nearly 20% of refining capacity eliminated, analysts warn prices could spike 15–30¢ per gallon — and in some forecasts, surge to $8 per gallon. These closures aren’t accidents — they’re the predictable result of stifling regulations, permitting delays, and aggressive anti-fossil-fuel policies foisted upon Californians by the liberal, elite ruling class. The predictable squeeze hits working families and small business owners the hardest.

California’s approach resembles a fiscal chokehold on drivers. Through a combination of automatic taxation, complex regulatory layers, and market-driven supply cuts, the state is raising your cost of living and working — without your approval, and with scant evidence of legislative oversight. It’s time for Californians to demand smarter, commonsense policymaking that balances the aspirations of environmental protection with economic pragmatism. Policies like:

Sunset the inflation-based tax hike, or require voter approval for future increases.

• Cap or repeal LCFS credit prices, especially while refineries are still operational—or offer transparent cost-benefit analyses.
• Streamline permitting, align California’s fuel blend standards with Western neighbors, and protect strategic energy infrastructure before it disappears.
• Encourage imports and private investment to offset refinery losses—but only if it doesn’t sacrifice jobs or energy independence.

If it feels like you’re paying more at the pump, it’s because you are — and that was written into law long before you voted last November.

It’s time to push back by telling our state representatives to stop the gas tax madness, and to vote out as many of the tax-and-spend Democrats in 2026 as possible.