More Californians Blame Gas Tax Than ‘Price Gouging’ For Highest Gas Prices

According to a newly released Slingshot California Topline poll, nearly half of all Californians blame the state’s gas tax for why California’s gasoline prices are so high, with only around a third saying that price gouging is to blame.

While California’s gas price has always been on the higher side, motorists in the state have been feeling a greater pinch in the last few decades thanks to ever increasing gas taxes. In 2022, the combined extra taxes, designed to get as much from gas now while the state continues to get more electric cars on the road, was at $1.30. By 2026, thanks in large part to a ‘clean air tax’, it will be about $2 in 2026. Even the mainline gas tax has seen a more than steady increase in recent years, including going up from 58 cents a gallon to 60 cents a gallon at the beginning of July.

At the same time, Governor Gavin Newsom has said that spiking oil prices hasn’t been to the gas tax, but to price gouging by the oil industry. In May, he even signed a gas price gouging law into place. The California Energy Commission (CEC) has had a different story to tell, showing that spikes in the last few years occurred because of refineries temporally going out of commission due to not enough oil getting to them. The CEC also said that lower prices this year were caused by many factors, including a cut in industry costs and profits, lower crude oil costs, and a cut in how much environmental programs are getting. In essence, it was multiple factors. However, they could even be lower, but as the CEC noted, the only thing that went up was the gas tax itself.

And for voters, that’s what they have seen. “Price gouging” is largely shifts in crude oil prices and companies needing to charge more because of added refinery and transportation stresses due to high demand. However, the gas tax is constant, regardless of demand and other factors, with lawmakers refusing to budge on it. Even a measure to reduce the gas tax by $1 to help struggling  Californians failed to pass last year.

Voters have seen this, evidenced by the latest poll numbers. According to the Topline poll, 47% believe that the gas tax is to blame for higher gas prices in California – far and away the highest polled figure. The second highest, only 35%, blamed price gouging. In third place was the blame on California’s special gasoline blend meant to reduce pollution, which only 25% of voters said was true. Other answers included 18% saying higher costs of business in California, 15% California’s restrictions on oil drilling and refinery expansions, and 14% governmental regulations.

Paying more at the pump

Considering that Newsom has been railing against price gouging for years, about two-thirds of state still refuses to believe him on price gouging. But they sure do believe that the culprit is the last thing Newsom and state Democrats wanted blamed: the gas tax. And not price gouging, as there really isn’t evidence for it.

“Newsom made a big display of blaming refineries in 2022 when gas prices soared to $6.22 per gallon and the state created an independent watchdog to investigate market manipulation,” said USC associate professor of business Shon Hiatt in a statement. “But the investigation is ongoing, and ‘we haven’t seen any evidence of price gouging yet.”

And for many researchers, the fact that most people think the gas tax is to blame isn’t surprising.

“It’s a multi-factored reason in California for higher prices, but when you break down the price, the gas tax is the biggest chunk there,” explained fuel price researcher Glenn Brown. “The poll shows that voters aren’t buying into price gouging nearly as much as some lawmakers thought. They are still pointing at the gas tax, likely because it is creeping up more and more, with everything, including crude price, going down. It’s harder to justify price gouging when those common “gouging” fixtures are going down in price.

“$2 more in 2026 from gas taxes. That’s basic subtraction for people at the pump. It adds up quick.”

More polls on the gas cost are to come out soon.