California drivers know the sting of filling up at the pump, where prices often hover $1.50 to $2 above the national average—$4.65 per gallon versus $3.15 nationally as of April 2025. While crude oil and refining costs play a role, the real culprit behind these sky-high prices is a web of state taxes, fees, and regulations that inflate costs far beyond what’s necessary. Add to that the elevated operational costs for gas stations in California’s pricey real estate and regulatory environment, and it’s clear why motorists are squeezed. Worse, the state’s aggressive climate policies, like cap-and-trade and low carbon fuel standards, promise global environmental gains but deliver negligible impact, raising questions about their prudence.

Let’s break down the numbers. According to the California Energy Commission, taxes and fees account for roughly $1.35 per gallon of gasoline in 2024. The state excise tax, the highest in the nation, stands at 59.6 cents per gallon, up from 27.8 cents in 2017, with annual increases tied to inflation. The federal excise tax adds 18.4 cents, unchanged since 1993. State and local sales taxes, averaging 2.25% but varying by region,… Read More

My latest op-ed as seen in The Sacramento Bee. With prices at the pump heading back up, news of a possible cut to the state’s gas tax will surely cheer California drivers. On Tuesday, the State Board of Equalization will consider a proposal to cut the state’s gas tax by 7.5 cents a gallon. The proposal stems from a complicated formula enacted by the Legislature in 2010. While California drivers will surely welcome news of a possible cut, there are some who would rather see gas taxes go up. They think you should be sending more dollars, not fewer, to Sacramento. But let’s be honest, government already has more than enough of your dollars. Californians pay about 64 cents per gallon in taxes and fees – the second-highest rate in the nation. In reality, we have the nation’s highest gas tax once you include the new hidden gas tax imposed by regulators to help fund the state’s anti-global-warming efforts. Californians must even pay taxes on their taxes. That’s double taxation – and it’s wrong. California’s gas tax is so confusing and complicated that even news … Read More

I’m pleased to report that Senator Bob Dutton is stepping forward to fight for California consumers who are sick of high gas prices. Lawmakers like to complain about high gas prices. Now they have a chance to do something to help. The legislation, which I am sponsoring, will cap the state excise tax on gasoline at 35.7 cents and limit sales tax to the first $4.00 per gallon of gasoline. It would also cap diesel taxes at their current levels. Most Californians don’t realize they’re already paying about $10 in tax each time they fill up their gas tank. Without a cap, that number could get even worse. Should the average annual fuel price rises just one dollar—from $4 to $5 per gallon—the typical California consumer would be forced to pay 8 cents more in taxes per gallon. For most consumers this would translate into a $1 or more in additional tax for each tank of gas. As a whole, California consumers would be burdened $1.4 billion more in gas taxes each year – on top of the nearly $7 billion in taxes they are already paying. According to the American Petroleum … Read More