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.”