CDTFA

State Charge on Petroleum Production Increasing July 1

GasPrices

The state’s Oil Spill Prevention and Administration Fee will increase July 1, the California Department of Tax and Fee Administration announced May 21.

The charge will increase from 9.6 cents per barrel to 9.9 cents per barrel of crude oil, petroleum products, and renewable fuel, ultimately adding to the price of gasoline at the pump.

“The Department of Fish and Wildlife is responsible for determining the OSPA fee rate each fiscal year based on the percentage change in the California Consumer Price Index,” the CDTFA stated.

The rate has more than doubled since 2003, when it was 4 cents per barrel. The annual inflation increases began in 2023.

“Owners of crude oil, petroleum products, and renewable fuel must pay the OSPA fee,” the CDTFA stated. “Marine terminal operators, refinery operators, renewable fuel receiving facility operators, and renewable fuel production facility operators are responsible for collecting the OSPA fee from the owner.”