LEMON GROVE, Calif. (KGTV) — Pain at the pump is hitting San Diegans hard, and for small business owners, the impact is becoming increasingly difficult to absorb.
The issue of rising gas prices — and whether California’s gas tax should stay or go — took center stage during the recent gubernatorial debate. But beyond the political stage, the real-world effects are playing out in communities like Lemon Grove.
Along Federal Boulevard, Birrieria La Loteria has been serving customers since opening during the COVID-19 pandemic. Owner Theresa Sandoval says the challenges have only grown since then.
“We started during COVID, so it's been kind of a struggle with everything that's going on now and back then,” Sandoval said.
Now, she says higher gas prices are changing customer habits.
“They’re like, ‘Oh, we only come once a week now’ due to the fact that gas prices have gone up,” she explained.
It’s not just brick-and-mortar businesses feeling the strain. Mobile food vendors say the cost of simply staying on the road has surged.
Sandoval says they now spend about $200 a week on gas alone — more than double what they paid when they first opened in 2020.
“Definitely a big difference — like $80 versus $200 is a big difference, and it does hurt our pockets,” Sandoval said.
Those rising costs are forcing tough decisions, including cutting hours and scaling back operations.
“We minimized our hours, so we’re open less due to gas prices,” she added.
Even events meant to bring in more customers are being cut.
“We no longer do pop-ups because of the high prices… people are already hurting their pocket and don’t want to pay a higher price, so we stopped doing that to lower our costs,”Sandoval said.
A significant portion of what drivers pay at the pump in California comes from taxes and fees.
The state gas excise tax sits at about 61 cents per gallon — one of the highest in the nation — and is used to fund road repairs, highway maintenance, and transportation projects.
On top of that, there’s a federal gas tax of roughly 18 cents per gallon, which supports national infrastructure.
California drivers also pay local sales taxes depending on the region, along with additional costs tied to environmental programs like cap-and-trade.
Altogether, these taxes and fees can add up to roughly $1 per gallon in California.
As gas prices remain elevated, small businesses — especially those reliant on transportation — are being forced to adapt in real time.
For some, that means fewer hours. For others, it means cutting services entirely.
And as the debate over the gas tax continues in Sacramento, business owners say relief can’t come soon enough.
