SACREMENTO, Calif. — The price of a gallon of diesel in the state of California will potentially see a significant bump in price Wednesday as a fuel price increase comes into play.
Current excise components making up the tax rates are 27.8 cents for gas and 16 cents for diesel.
Wednesday, the excise rate on gas will increase by 12 cents to 39.8 cents and another round of increases will occur in July 2019 when the gas rate will be raised 7.5 cents to 47.3 cents. The excise rate on diesel will jump by 20 cents to 36 cents.
Both excise rates will be adjusted for inflation in July 2020.
The excise rates on gas and diesel also will be adjusted for inflation beginning in July 2020.
The tax increases, passed by lawmakers this year and signed into law by Gov. Jerry Brown, will generate $52 billion over 10 years for road and bridge repairs.
Revenue from the diesel sales tax increase, however, will not directly benefit trucking, as some of the money will be placed into an account for transit and intercity rail projects.
California diesel prices are already some of the highest in the nation.
According to data provided by the U.S. Energy Information Administration, the average retail on-highway price of a gallon of diesel for the week ending October 30 is $3.185, 33 cents higher than the same week last year.