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Gas prices will go up on Wednesday due to new California state tax

Posted at 9:21 AM, Jan 03, 2018
and last updated 2018-01-03 12:21:08-05

Gas prices in California will go up on Wednesday due to a state tax set to improve road programs, public transit and traffic congestion projects.

Gas prices will rise by 12 cents a gallon for gasoline and 16 center for diesel. This will translate into $52 billion in revenue over the next decade.

One of the goals for the extra revenue is to have 98 percent of state highways in good or fair condition by the end of 2027. 

The state tax is only one of the cost increases vehicle owners will face in the new year. As of Jan. 1 there will be a new annual fee based on a car's worth and starting in 2020, electric car owners will be charged a $100 annual fee.

California is one of more than twenty states that have passed gas tax increases over the last five years to help with road repairs.