Blame California Politicians for the State’s Sky-High Gasoline Prices
If you’ve driven in California and pulled into a gas station to fill the tank, you know the Golden State’s gasoline market exists in some realm parallel to but separate from the rest of the country, with fuel priced as if the place was the setting for a Mad Max movie (OK, some parts sort of are). As I write, the average price for gasoline in the U.S. is $3.17 per gallon, but Californians are somehow paying $4.53. Given the state just raised fuel tax rates, those prices aren’t going down any time soon. In fact, Californians can blame state officials overall for the high cost of filling a car.
Highest Gasoline Tax in the Country
“Californians pay an additional 72.4 cents per gallon at the pump attributable to state and local taxes and fees, which is the highest in the nation,” according to the California Tax Foundation. “California’s state excise on gasoline is 57.9 cents per gallon (as of July 1, 2023).”
Since that data was published, gas taxes have gone up further, most recently rising to 61.2 cents per gallon on July 1, up from 59.6 cents per gallon. The state’s gasoline tax frequently rises since it’s automatically adjusted for inflation every year. Ten years ago, it was 30 cents per gallon. And of course, prices at the pump rise accordingly.
But that’s not all that happened on July 1 that’s of interest to California drivers.
“On the same day, changes to the state’s Low Carbon Fuel Standard (LCFS) were implemented, which will likely increase the cost of fuel even further,” Kristian Fors and Sean Brenot noted for the Independent Institute. “The LCFS was approved in 2009 and requires bulk fuel suppliers to adhere to specific ‘carbon intensity benchmarks.’ To comply with these requirements, these sellers must reduce emissions from their supply chains or purchase credits from companies that sell lower-carbon fuels and generate LCFS credits.”
Environmental Rules Drive Up the Price
The LCFS isn’t a tax, as such, but it’s a regulatory requirement that adds costs to the process of delivering fuel to consumers. That ulti
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