U.S. gas prices and state taxes show significant regional variations

Gasoline prices and taxes are seeing significant variations and increases across the United States. According to a report from the Tax Foundation, California maintains the highest state gas tax in the nation at 73.6 cents per gallon. Other states with high taxes include Illinois at 70.4 cents, Indiana at 63.1 cents, Washington at 60.2 cents, and Pennsylvania at 58.7 cents. Conversely, Alaska has the lowest rate at 8.9 cents, while New York sits at 24.2 cents.

Beyond standard user fees for road maintenance, environmental policies such as carbon taxes, cap-and-trade systems, and clean fuel standards are contributing to higher retail costs. In California, the cap-and-trade program is estimated to add approximately 23 cents per gallon, while the Low Carbon Fuel Standard adds between 19 and 52 cents per gallon.

In Southern California, average gas prices have continued to rise, with Los Angeles County seeing its 22nd consecutive day of increases. The average price in Los Angeles County reached $5.924, while Orange County reached $5.904. Nationally, the average price has also risen, reaching $4.224, marking its highest level for this time of year.