California sees lowest July gas prices in 3 years
Chart of gas prices. July 3, 2025 Graphic: Gov. Newsom via CEC analysis of OPIS data.
SACRAMENTO, Calif. - California is seeing the lowest July gas prices in three years, the governor's office said on Thursday, one day before the July 4 holiday.
Statewide, the average price at the pump is now about $4.30 a gallon, compared to roughly $6 a gallon in the summer of 2022.
Around the Bay Area, San Francisco has the highest average price at $4.82 per gallon, followed by San Mateo County at $4.76. Alameda and Contra Costa counties are even at $4.67, with a gallon checking in at $4.62 in Santa Clara County, according to AAA.
A new state excise tax of 1.6 cents per gallon went into effect this week, however, which could raise the prices slightly.
Gov. Gavin Newsom immediately cheered the dip in prices, highlighting a law he signed in October 2024 that gives energy regulators the authority to require that refineries keep a certain amount of fuel on hand. The goal is to try to keep prices from increasing suddenly when refineries go offline for maintenance.
Opponents of the law said it would raise gas prices and the safety of workers.
In a statement, Newsom's office pointed to the Republican narrative, which he called "fearmongering," about prices that some said would increase by 65 cents a gallon on July 1, "which did not happen."
Across the country, gas prices are down, as well. So it's unclear if California is seeing a dip because of its new law, or another reason.
GasBuddy reports that the average price at the pump is expected to average between $3.10 and $3.15 a gallon nationwide.
That’s down sharply from $3.49 per gallon last year and would represent the cheapest gas for the summer holiday since at least 2021.