Thanks Gavin: Another California Gas Tax Increases TODAY

We already know that California’s gas prices and gas taxes are the highest in the nation. Buckle up – they are going higher.

California’s gas prices are going up again effective today, July 1, 2024.

According to the California Energy Commission, California drivers will be paying 90 cents in taxes per gallon of gas, but Cal Tax reports $1.21 per gallon is collected by the government in taxes and fees.

This is a partial breakdown – see the chart below for the totals:

• $0.60 on state excise tax
• $0.18 on the federal excise tax
• $0.10 cents on more state and local sales taxes
• $0.02 for a state underground storage tank fee

Here is how California measures up against other states, according to AAA:

Within the state of California, here is a link to see how your county measures up, from AAA:

Cal Tax has the details:

California’s excise tax on gasoline will increase from 57.9 cents per gallon to 59.6 cents per gallon July 1, the California Department of Tax and Fee Administration announced via a notice to retailers.

The excise tax on diesel fuel will increase from 44.1 cents per gallon to 45.4 cents per gallon.

The gas tax has more than doubled since June 2017, when it was 27.8 cents per gallon.

In addition to the excise tax, California motorists pay a federal fuel tax of 18.4 cents per gallon, and state costs for the low-carbon fuel standard, the cap-and-trade program, state and local sales tax, and the underground storage fee. All totaled, for motor vehicle fuel priced at $5 per gallon, taxpayers pay approximately $1.21 per gallon in state and federal taxes and fees.

Data from the California Energy Commission shows that the $1.21 per gallon collected by the government in taxes and fees is significantly more than the profit earned by gasoline refiners. The commission’s breakdown of gasoline prices indicates that “refinery costs and profit” were roughly $1.01 per gallon on April 29, and were as low as 30 cents per gallon in January.

The tax increase was announced in a section of the CDTFA’s website used primarily by retailers, in a notice titled simply, “Tax Rates for Motor Vehicle and Diesel Fuels.”

We also have the California Governor, Legislature and State Air Resources Board working hand in glove to restrict the availability of oil and gas and increase the cost of gas at the pump so severely, middle class and working class drivers will be making choices between groceries and fuel for the car.

According to the Western States Petroleum Association:

“Assembly Bill 3233 by Assemblywoman Dawn Addis (D-Morro Bay) and Sen. Scott Wiener (D-San Francisco), would authorize a local entity, by ordinance, to limit or prohibit oil and gas operations. In 2023, the California Supreme Court held that State law, and in particular Section 3106 of the Public Resources Code (PRC), preempts any contradictory ban or limitation imposed by a local authority on the methods of oil and gas production in its jurisdiction. The bill seeks to circumvent the recent California Supreme Court case law and Section 3106 PRC, and replace the comprehensive, longstanding State law with a patchwork of local ordinances that may ban or add unfeasible limits to oil and gas exploration, production and abandonment work.

AB 3233 is currently in the State Senate awaiting another committee hearing. Meanwhile, as you enjoy your July gas prices, remember who is responsible.