CA gas prices are dropping. See map to find cheapest stations in Merced County
Though gas prices across California were expected to rise in July due to the state’s new gas tax increase and fuel policy changes, that hasn’t been the case so far.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, gas prices are actually dropping across the Golden State — including in Merced County.
Despite the excise tax ticking up from 59.6 to 61.2 cents per gallon and the rollout of the Low Carbon Fuel Standard, De Haan said, fuel costs for California drivers have declined.
“Folks that may have been reading more of the extreme articles would have expected that gas prices would have shot up, with politicians saying we were going to see $8 gasoline,” De Haan told The Sacramento Bee on Thursday, July 17. “But we’ve actually seen gas prices drop.”
If you are commuting or traveling in Merced County, here’s how much you can expect to pay at the pump:
Why are California gas prices dropping?
De Haan said California gas prices have been dropping, offsetting the impact of the new gas tax.
“The increase from the new gas tax has been offset by developments in the Middle East, which had originally pushed the price of gas up,” he said.
In June 2025, conflict in the Middle East had caused fuel prices to spike across the United States.
Drivers saw regular gas prices jump by seven to 15 cents per gallon, while diesel rose by 10 to 20 cents.
With tensions easing in the region, gas prices have started to decrease.
“Californians are technically paying more per gallon due to the tax and (Low Carbon Fuel Standard), but it’s been kind of an invisible increase, because wholesale gas prices have gone down,” DeHaan said. “People have not visibly seen the impact.”
Will fuel costs continue to decrease?
De Haan said the biggest factor that could drive gas prices up this summer is whether California experiences any refinery outages.
“That’s been the recurring theme over the last couple of years,” he said.
If there is an unexpected refinery outage, it could temporarily strain supply and send prices climbing.
If no major issues arise, De Haan said, gas prices should “either remain stable or slowly decline for the rest of summer.”
“Gas prices typically peak at the beginning of summer around Memorial Day weekend,” he said. “So California may have already seen its worse price at the pump this summer.”
How much is gas in Merced County?
As of Friday, July 18, the average price for a gallon of regular gas in the Merced area was $4.37.
While that is roughly 10 cents less than June’s average, it is still a dollar more than the national average of $3.16.
Around this same time in 2024, Merced’s average was approximately $4.62.
Where to find cheapest gas in Merced County
As of Friday, some Merced area stations were offering prices below the local average of $4.37, according to the price-tracking site GasBuddy.
These were 10 of the cheapest gas stations in Merced County based on the cash price for a gallon of regular gasoline, according to GasBuddy:
- $3.69 per gallon — Love’s Travel Stop, 29025 West Plaza Drive, Santa Nella
- $3.69 per gallon — ARCO, 12185 South Santa Nella Blvd., Santa Nella
- $3.69 per gallon — Delhi 5 Star, 15406 August Ave., Delhi
- $3.73 per gallon — Sinclair, 1411 V St., Merced
- $3.75 per gallon — Costco, 1445 R St., Merced
- $3.75 per gallon — Diamond Gas and Market, 1720 R St., Merced
- $3.79 per gallon — ARCO, 2080 Campbell Blvd., Livingston
- $3.79 per gallon — Quik Stop, 401 Joseph Gallo Court, Livingston
- $3.79 per gallon — Sinclair, 1911 Atwater Blvd., Atwater
- $3.79 per gallon — Petro Shopping Center, 28991 West Gonzaga Road, Santa Nella
