The price drivers pay at the gas pump — averaging $3.45 in June — includes a federal tax of 18.4 cents per gallon, plus state taxes that vary widely.
In seven places, those state taxes are set to increase at the height of the summer driving season. The list below shows the total state taxes for those spots, effective July 1:
California: 69.8 cents per gallon — the highest of all states.
Colorado: 27.9 cents per gallon.
Illinois: 67.1 cents per gallon.
Indiana: 56.1 cents per gallon.
Missouri: 27.5 cents per gallon.
Nebraska: 30.5 cents per gallon.
Virginia: 40.4 cents per gallon.
How these states will hike their taxes
In California , the state’s excise tax on gas will rise from 57.9 cents per gallon to 59.6 cents per gallon, according to the California Department of Tax and Fee Administration. When other state taxes and fees are taken into account, the state tax on a gallon of fuel in California will rise from about 68 cents to about 70 cents.
Read more on each respective state for information
Gas prices are influenced by several factors, including:
- Crude Oil Prices: The largest component of gasoline prices is the cost of crude oil. When global oil prices rise, it directly impacts gasoline prices.
- Refining Costs and Profits: Refineries process crude oil into gasoline. Their costs, maintenance, and profit margins affect the final price at the pump.
- Distribution and Marketing: Distributors transport gasoline from refineries to gas stations. Marketing costs, branding, and station location also play a role.
- Taxes: Federal, state, and local taxes are added to the base price. These vary by location and contribute significantly to the final cost.
- Supply and Demand: When demand exceeds supply, prices rise. Seasonal variations (e.g., summer driving season) also affect demand.
- Exchange Rates: Gasoline is traded globally, so exchange rates impact prices.
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