
Time to Cap California’s Rising Fuel Taxes
It might not make the experience any less painful, but next time you fill up your gas tank, try figuring out how much you just paid in taxes. Do the math, and you’ll soon discover that rising fuel prices are a whole lot better for the government than they are for you.
California consumers pay the highest prices for fuel anywhere in the continental United States. These prices include hidden taxes that help drive up fuel prices. Each and every time fuel prices rise, our taxes go up too.
According to the American Petroleum Institute, California’s gasoline taxes and fees, averaging 67 cents per gallon, are tied with Connecticut’s as the second highest in the nation. California’s diesel taxes are the highest in the nation, averaging 75.9 cents per gallon.
Included in the price you pay for gasoline are a (1) federal excise tax of 18.4 cents per gallon, (2) state excise tax of 35.7 cents per gallon and (3) sales tax of 2.25% plus applicable local taxes. Notably, the sales tax is calculated on the total price of the fuel sale including excise taxes, resulting in double taxation—California consumers pay a tax on a tax.
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