From longer lines at Costco to rethinking everyday trips, the cost of fuel is changing how we move through our day.
(CLAIR | Simi Valley, CA) — Fuel connects everything. The drive to work. The cost of food. The electricity powering your home. Even if you never stop at a gas pump, you’re still part of the equation.
For drivers in Simi Valley, some of that cost is baked in before global oil markets even enter the picture. California’s state taxes and fees on gasoline reached 70.9 cents per gallon as of January 1, 2026, the highest in the nation, according to the U.S. Energy Information Administration. The federal government adds another 18.3 cents per gallon for regular gas on top of that, a rate that has not moved since 1993, also according to EIA. Together, that’s nearly 90 cents per gallon in taxes before a drop of fuel is sold. If Sacramento cut its share in half, a driver filling a 15-gallon tank would save more than $5 per fill-up. If Washington acted at the same time, the combined savings would approach $7. For a household stopping at the pump two or three times a week, that’s real money. It’s also exactly why the debate over the gas tax has moved from a policy conversation to a kitchen-table one.
Rising fossil fuel prices don’t stay at the pump. They show up in ways that are harder to track. Delivery costs rise. Grocery bills follow. Electricity prices are part of that picture too, influenced in part by natural gas, which still plays a significant role in California’s power mix, according to EIA.
For drivers who rely on gas-powered vehicles in Simi Valley, the impact is immediate. Most trips require a car, and fuel is part of the weekly routine. When prices climb, behavior changes. People think twice before running a single errand. Lines at Costco stretch longer. Others compare prices at local stations before heading out.
While most of the oil the U.S. uses is produced domestically, it’s still priced on a global market. Supply and demand across the world, not just within the United States, drives what we pay. That’s why events far from California can move prices here quickly. Key shipping routes like the Strait of Hormuz handle a significant share of global oil and gas transport. When those routes are threatened, markets react fast.
Calls to act on the state tax are getting louder in Sacramento. Two proposals, Senate Bill 1035 and Assembly Bill 1745, would pause the state excise tax and some climate-related fuel costs for roughly a year. That relief could reduce prices by around $1 per gallon if the savings were fully passed on to drivers, according to OPIS, an energy pricing and news service. So far, lawmakers have blocked both efforts, citing the billions of dollars the tax generates for roads and the absence of any plan to replace that funding.
The push for relief is not coming from one side of the aisle. San Jose Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa, both Democrats, have called for suspending the tax or rolling back fuel-related regulations while prices remain high, the Los Angeles Times reported. That signals something worth noting: this has become a cost-of-living argument as much as a policy one.
Other countries are moving more quickly. Reuters reported that Australia cut its fuel tax in half for three months, saving drivers the equivalent of about $1 per gallon. The cost to the Australian government was approximately $1.75 billion. They chose short-term relief knowing it was temporary and expensive.
For some drivers, the calculus goes beyond what they pay at the pump. It reaches what they choose to drive. History suggests that sustained fuel spikes push buyers toward smaller, more efficient vehicles, as happened during the 1970s oil crisis and again in 2008, according to Fast Company. The current spike follows a similar early pattern. According to Edmunds, the share of consumers researching electrified vehicles climbed to 22.4% of all vehicle shopping activity after fuel prices began rising, up from 20.7 percent just before. But switching vehicles is harder than it used to be. The average new car price reached nearly $49,000 in February 2026, up from about $45,600 in February 2022, and the average monthly payment has risen to $775 from $656 over the same period, Edmunds reported. Cox Automotive found that most U.S. consumers would need gas to hit $6 per gallon before seriously considering the switch to an EV or hybrid.
For many drivers that tipping point is already here. The average price in the Los Angeles area has risen $1.30 in the past year and is closing in on $6 per gallon, according to the Auto Club of Southern California. But for households on a fixed income, the question of switching vehicles is not really a question at all. A new car is not an option. They simply pay what it costs and cut something else.
A related tension is also building. Gas taxes are tied to fuel consumption, meaning drivers who buy more gas contribute more to road funding. Electric vehicle owners do not pay that tax the same way. As more EVs enter the market, that gap is becoming harder to ignore. California has begun addressing it through higher EV registration fees and a mileage-based pilot program run through the California Department of Transportation, which would charge drivers based on miles traveled rather than fuel purchased. Supporters say it treats all drivers more equally. Critics raise questions about added costs and the privacy implications of tracking driving data. The program remains under study.
Back on the ground, the adjustments are more immediate. Drivers are combining errands, reconsidering extra trips and paying closer attention to where they fill up. The price spread between stations in the same part of town can be wide enough to save $5 to $10 per fill-up. Checking GasBuddy before heading out has become routine for some. Costco remains a reliable option for those already nearby.
One other issue that tends to resurface when prices spike is fuel theft. Posts in local forums describe tanks losing gas overnight after a recent fill-up, and longtime drivers say it echoes past price spikes when siphoning became more common. The practical advice being shared: park in visible areas, consider a locking gas cap and stay alert to anything unusual around your vehicle.
None of it should be this hard. Filling a tank should not require a strategy. But until Sacramento and Washington decide that nearly 90 cents a gallon in taxes is too much to ask of drivers already stretched thin, the math falls on the people least able to absorb it. One errand at a time. One fill-up at a time. One locked gas cap at a time.
