California just introduced several new laws on July 1, including tighter rules on student smartphone use and a push to standardize date labels on food. Another big change for everyday residents is a higher state gas tax that kicked in on Wednesday, adding 2.2 cents per gallon to the gasoline excise tax, according to the California Department of Tax and Fee Administration.
The gas tax now comes in at roughly 63.4 cents per gallon, up from 61.2 cents, which still makes California’s rate the highest in the nation and adds about 33 cents to the cost of filling a typical 15‑gallon tank. Diesel drivers will feel it too, with the diesel excise tax rising from 46.6 cents to 48.2 cents per gallon.
This latest increase is part of an automatic, annual adjustment created by Senate Bill 1, the 2017 “Road Repair and Accountability Act,” which pegs fuel tax hikes to inflation each July.
How and where to find cheap gas in the Bay Area
According to AAA’s daily fuel price map, California’s average fuel price is around $5.3890 per gallon, which is substantially higher than the national average of $3.8230.
While prices can vary greatly across different stations, the Bay Area sees some of the highest gas averages in the state. San Francisco’s average is sitting at $5.580 today, the highest of all 9 Bay Area counties. Solano County, however, has clocked in with the lowest average in the Bay Area at $5.339.
Gas station finder app GasBuddy lists the cheapest gas stations in the Bay Area today (morning of July 3, 2026) as follows.
- $4.75: ARCO, 2686 Pleasant Hill Rd, Pleasant Hill, CA
- $4.75: Valero, 6710 Alhambra Ave, Martinez, CA
- $4.78: Diamond Gas & Mart, 5301 Mowry Ave, Fremont, CA
- $4.78: Elite Gas & Mart, 39990 Fremont Blvd, Fremont, CA
- $4.79: ARCO, 5012 Stevenson Blvd, Fremont, CA
- $4.83: Costco, 2400 Monument Blvd, Concord, CA
- $4.83: Costco, 1900 Davis St, San Leandro, CA
- $4.85: Costco, 22308 Hathaway Ave, Hayward, CA
- $4.85: Costco, 360 Newpark Mall, Newark, CA
- $4.87: HQ Fuels, 251 Shoreline Hwy, Mill Valley, CA
Incidentally, Costco opened its first-ever standalone gas station down in Southern California last week, right on time for the new state gas tax. It’s located at 25732 El Paseo in Mission Viejo, Orange County, right off the 5.
