Millions of drivers will see a gas tax increase starting today – who is affected?

A CHANGE has gone into effect that will impact millions of Americans at the pump.

Today, July 1, the gas tax in California will increase by roughly three cents per gallon.

The move comes despite state lawmakers urging for a suspension of the gas tax.

“We’ve been calling since January to suspend the gas tax, the quickest, easiest way to provide relief to every California consumer on gas prices right now,” said Assembly Republican Leader James Gallagher.

“If we had done it everyone would have saved over $2,400 right now.”

How much extra will you pay? 

Already, California has the highest gas prices in the country – with the current average at a whopping $6.27 per gallon, according to the AAA. 

The three-cent hike in California would mean small cars would cost an extra 36 cents each trip to the pump, considering the average fill-up takes 12 gallons. 

So, if you go to the pump once a week, you’ll spend an extra $1.44 per month. 

Larger cars take about 15 gallons on average to fill up – meaning it can cost you another $1.80 if you find yourself at gas stations at the same rate. 

In 2020, California had more than 27million registered drivers, according to market research firm Statista.

What’s going on federally?

The tax hike comes as President Joe Biden has called on Congress to suspend the federal gas tax. 

By enacting a gas tax holiday across the country, it would save drivers 18.4 cents per gallon.

However, it’s unlikely to pass.

Joe Manchin of West Virginia, one of the Democrats in the Senate that has held up Mr Biden’s build back agenda, has indicated that he would not support it.

Plus, Politico has reported it’s “likely doomed” because Democratic leadership isn’t as sold on the gas tax holiday as Biden is.

Additionally, some Republicans would have to vote in favor of it, assuming Democrats don’t nuke the legislative filibuster in the Senate.

What about other states? 

Meanwhile, some other states have enacted suspensions of the gas tax.

New York drivers have faced a 48.22-cent fuel tax on every gallon of gas and a 46.98-cent tax per gallon on diesel.

However, the state passed a gas tax holiday that will save drivers 16 cents per gallon of gas until the end of the year.

Georgia froze its roughly 29 cents tax per gallon on regular fuel and 32 cents tax on diesel in March.

Governor Brian Kemp has extended the holiday twice – with the latest now in effect until August 13.

In late March, Connecticut Governor Ned Lamont signed emergency legislation to temporarily suspend the state's 25 cents tax.

While it was set to expire on June 30, the governor announced this week that it has been extended through November 30.

For more related stories, see the states and cities offering relief direct payments of up to $1,700.  

Plus, about 23million Californians are set to get up to $1,050 in tax rebates.

Governor Gavin Newsome signed the state budget into law Thursday, which includes the direct payments.