California and Washington state are raising their gasoline taxes Wednesday just as millions of Americans prepare to hit the road for the Fourth of July holiday weekend, adding to fuel costs even as President Donald Trump presses retailers to cut prices.
California, already home to the nation's highest state gasoline tax, increased its levy by 2.2 cents to 63.4 cents per gallon under an annual inflation adjustment required by the state's 2017 Road Repair and Accountability Act.
Combined with the federal gasoline tax of 18.4 cents per gallon, motorists now pay nearly 82 cents per gallon in fuel taxes before local fees.
Washington also raised its gasoline tax Wednesday, boosting it from 55.4 cents to 56.5 cents per gallon under a new law that ties future fuel tax increases to inflation.
Including other state fuel charges and the federal gas tax, drivers will pay roughly 77 cents per gallon in taxes and fees. State officials said the added revenue will fund highway, bridge, and ferry maintenance.
Supporters of the increases argue the higher taxes are needed to maintain aging transportation infrastructure.
Washington state Sen. Marko Liias, who sponsored the inflation-adjustment law, acknowledged higher fuel costs but said failing to maintain roads and bridges would ultimately be costlier for the economy.
"When we lose a bridge because it isn't being maintained, when we have to close lanes because we can't maintain them, that's even worse for the economy," said Liias, a Democrat.
"So we're trying to balance kind of keeping the system open, keeping it functional, with the fact that obviously all of us are struggling with costs right now," he added.
The tax increases come as Trump has intensified pressure on gasoline retailers to lower prices, arguing that falling crude oil prices should translate into cheaper fuel for consumers.
In a Truth Social post Monday, Trump said gasoline prices remain too high with oil trading around $68 per barrel and urged retailers to reduce prices to about $2.50 per gallon.
Trump also criticized California's fuel taxes, posting on social media that the state should "stop charging such heavy Taxes on their Gasoline," while warning retailers against potential price gouging.
Industry analysts note that gasoline prices often decline more slowly than crude oil prices because retailers are selling fuel purchased at earlier, higher costs.