Mustang Shelby GT500

Make
Ford
Segment
Coupe

The pain at the pumps keeps on just getting more, er, painful. Nationwide gas prices have been soaring since the Ukraine invasion, resulting Russian oil sanctions and dreaded inflation. But now there is a new headache and that comes in the form of an approved gas tax hike for California. As if drivers didn't have it bad enough, especially if you're driving a gas guzzler like a Ford Mustang Shelby GT500, an approved tax hike went into effect today. As of July 1, just in advance of the July 4th holiday weekend, gas prices will go up again despite the feds trying to curb them.

California had already been trending high at over $6.00 / gallon across the state, but the issue was worse in highly populated areas like the Bay Area or Los Angeles. The new tax hike, which was approved five years ago, hits today at the worst possible time. But there is light at the end of this tunnel with a state tax rebate.

The California gas tax hike is the latest in a string of bad news for car owners, as one economist put it to NBC Bay Area News, "The gas tax itself isn't an overwhelming indignity. It comes on top of a whole series of indignities."

It really is a perfect storm for California drivers that aren't part of the EV revolution yet. The California gas tax is the second highest in the nation now at $0.511 per gallon, trailing only Pennsylvania. This latest tax increase amounts to three cents per gallon, which really starts to add up with millions of California cars on the road. Well, except for the already smug Tesla Model S Plaid owners who will be gloating about their purchase as Tesla offers free Superchargers in California from July 1-4.

"We've finally, I think, hit the mark where people are resisting just driving just to see grandma, and go to the grocery store three times a week," said Bob van der Valk, Editor of the Bakken Oil Business Journal to ABC7 News.

While gasoline prices might be affected in California, it was interesting to note that diesel was unaffected by the tax hike as it's classified in a different area. Naturally, a big holiday weekend for travel will see slight increases at the pumps as demand rises. Of little consolation here is the Middle Class Tax Refund of $200-$1,050, which California Governor Gavin Newsom signed but will the refunds will not come into effect until late October.