Opinion
Breaking Down California's 'Mystery' High Gas Prices
Why Californians are paying $6 per gallon for gasoline while Texans pay less than $4.
Opinion
Why Californians are paying $6 per gallon for gasoline while Texans pay less than $4.
Some liberals call the gap between California and U.S. average gasoline prices a “mystery surcharge.” It’s not a mystery. It’s the direct result of progressive policies.
Refiners are rewarded for using more biofuels. If they don’t meet CARB’s benchmark, they must buy regulatory credits. The program adds an estimated 22 cents per gallon to the price, according to WSPA.
In 2017, Democrats raised the state’s gasoline excise tax by 12 cents per gallon and linked it to inflation. California also imposes a sales tax on gasoline. So when the wholesale price of gasoline rises, drivers pay even more in taxes.
Californians pay about 73 cents per gallon in state taxes compared to 39 cents nationwide and 44 cents in Florida, 25 cents in Arizona and 20 cents in Texas.
California refineries are among the only sources of the state’s mandated squeaky clean blend of gasoline. Refinery shutdowns have tightened the state’s gasoline supply, which has driven up prices.
California Gov. Gavin Newsom last week proposed sending every Californian who owns a car registered in the state (including electric vehicles) $400 “gas tax rebates.” But at today’s prices, Californians on average would pay more than $860 this year on gasoline than drivers in the rest of the country.
Produced by: Allysia Finley
Visual Editor: Esther Plecy
Cover photo credit: Piotr Adamowicz / Alamy Stock Photo