This year has been particularly challenging at the pump for many Americans, but Californians have been feeling even greater pressure due to the ongoing conflict involving Iran. While the situation in the Middle East has contributed to unpredictable fuel price increases, California drivers will soon face another rise in fuel costs. Beginning July 1, the state’s annual fuel tax adjustments will take effect, resulting in higher gasoline and diesel prices.
According to a Special Notice released by the California Department of Tax and Fee Administration, the gasoline excise tax will increase from 61.2 cents to 63.4 cents per gallon. Meanwhile, the diesel excise tax will rise from 46.6 cents to 48.2 cents per gallon. The revenue generated from these taxes will help fund projects of critical transportation infrastructure projects, like road maintenance, bridge safety, and congestion relief.
However, these tax increases are not new for California residents. The state’s fuel taxes are automatically adjusted each year on July 1 to account for inflation, with the percentage change based on the California Consumer Price Index. While state leaders continue to defend these annual adjustments, Patrick De Haan, Head of Petroleum Analysis at GasBuddy, shared with ABC 10 News that “California motorists have the most pain at the pump, and taxes are just one source of that underlying pain.”
Fortunately, there are steps California business owners can take to help offset rising fuel costs. At Energie Fuel, we recommend several strategies to prepare for higher gasoline and diesel prices.
First, businesses should consider enrolling in the Energie Fuel Card program, which is designed to support fleets of all sizes across a wide range of industries. The program features no setup fees, no monthly or annual fees, and no transaction fees. Additionally, the Energie Fuel Card provides exclusive access to wholesale fuel sites, also known as Cardlock stations, which are specifically designed for businesses, fleets, and commercial drivers. By consistently fueling at wholesale locations, businesses can significantly reduce their overall fuel expenses.
Our second and most strongly recommended strategy is to make the switch to fueling exclusively at wholesale sites whenever possible. While retail fuel stations offer convenience, they typically come with higher fuel prices, and those additional costs can quickly add up for businesses operating multiple vehicles. In contrast, Cardlock stations provide access to wholesale fuel pricing that is not available to the general public. In many cases, fueling at a Cardlock station can reduce fuel costs by approximately $0.15 to $1.00 per gallon compared to traditional retail stations.
If you’re unsure where to find a Cardlock station, Energie Fuel has made the process simple with convenient station maps that can be accessed directly through Google Maps.
Ultimately, while these upcoming fuel tax increases in California will certainly be felt at the pump for the summer, businesses can take proactive steps to minimize their impact by making smarter fueling decisions all year-round. Energie Fuel is committed to helping businesses reduce costs, improve efficiency, and navigate changing fuel market conditions with confidence.