Millions of Americans aren’t happy about this.
Millions of Californians traveling for the Fourth of July holiday are paying significantly more at the gas pump this year, with fuel prices climbing well above the national average and adding to the cost of Independence Day travel.
According to the American Automobile Association (AAA), the average price for a gallon of regular gasoline in California reached $5.40 on Thursday. At this time last year, the statewide average was $4.57 per gallon, meaning drivers are paying nearly a dollar more for every gallon they purchase.
The increase comes as California also raised its gasoline tax on July 1. Under state law, the excise tax automatically increases each year to account for inflation. The latest adjustment pushed the tax from 61.2 cents to 63.4 cents per gallon, adding another expense for motorists already coping with the nation’s highest cost of living.
While the national average for regular gasoline sits at $3.84 per gallon, California continues to rank among the most expensive states for fuel. According to AAA, only Hawaii currently has higher average gas prices.
For many families planning road trips over the holiday weekend, the higher costs are taking a noticeable bite out of travel budgets.
One Los Angeles driver, identified as Zuli, said she had just spent about $60 to fill her vehicle before learning the state’s fuel tax had increased again.
She said she believed prices were finally beginning to ease and was frustrated to discover they had moved even higher, adding that it would be helpful if gasoline prices stopped rising so frequently.
Prices vary across the state, with some communities paying substantially more than the statewide average. In Mono County, near the California-Nevada border, average gasoline prices reached approximately $6.70 per gallon on Thursday.
Drivers in the Los Angeles-Long Beach area are paying roughly $5.41 per gallon, while the average in the San Francisco region has climbed to about $5.58. Both markets have increased sharply compared to the same period last year.
Energy analysts say multiple factors are contributing to higher fuel prices nationwide. Ongoing instability in the Middle East, including the conflict involving Iran, has created uncertainty in global energy markets and placed upward pressure on crude oil prices.
At the same time, many energy experts argue California’s own policies have amplified those increases. They point to the state’s higher fuel taxes, environmental regulations, special fuel blend requirements, and limited refining capacity as reasons Californians consistently pay far more than drivers in most other states.
AAA spokesperson Kandace Redd said reduced refining capacity has tightened fuel supplies, making prices more sensitive to market disruptions. She also noted that seasonal demand typically rises during the spring and summer travel season, placing additional pressure on prices.
California has already experienced several fuel price milestones this year. In late March, the statewide average price for diesel fuel climbed to approximately $7.45 per gallon, one of the highest levels ever recorded in the state.
Travelers from outside California say the difference is hard to ignore.
A couple identified as Paulina and Thomas said they recently drove through Utah, Arizona, Nevada, Oregon, and Washington before arriving in California.
They described California as the most expensive state for fuel during their trip, saying the higher prices affect both residents and visitors trying to enjoy the holiday weekend.
Governor Gavin Newsom has largely blamed rising fuel prices on global events and President Donald Trump’s handling of the conflict involving Iran.
In a statement posted by the governor’s office, Newsom argued that California had gone roughly two years without average gasoline prices exceeding $5 per gallon before recent military tensions disrupted global energy markets.
Critics disagree with that assessment, arguing that California’s taxes, regulations, and long-standing energy policies have played a significant role in keeping fuel prices among the highest in the country. As millions of Americans celebrate Independence Day, many California drivers say those higher costs are making it more expensive than ever to enjoy the holiday on the open road.