CALIFORNIA'S GASOLINE TAXES

2 PARAGRAPHS 4 LIBERTY: 474

Are you aware that, with another recent 2.2 cent increase, we Californians are now paying 75.4 cents in taxes and fees for each gallon of gasoline we purchase at the pump? It is true, and these are the highest charges in the nation. The breakdown is that we pay 63.4 cents per gallon in direct excise taxes, plus a state sales tax of 10 cents per gallon and an “Underground Storage Tank Fee” of 2 cents per gallon. Compare that to Texas (20 cents), Tennessee (27 cents), Nevada (23 cents) or Arizona (19 cents).

But that doesn’t tell the whole story about all of the ways that California makes gas prices more expensive. As explained by the U.S. Energy Information Administration, the California Energy Commission estimates that environmental compliance costs added as much as 54 cents per gallon as of March 2025.

In addition, California’s “Special Fuel Blend” has ensured that it is an isolated petroleum market and much more reliant upon foreign oil than we were decades ago. This has resulted in California’s foreign oil imports having roughly tripled in the past 20 years. And this, according to the U.S. Department of Energy, has increased California’s reliance upon foreign oil to over 60% of its production, which materially affects our nation’s balance of payments deficits.

And what are we getting for all of these increased fees and costs? Well, the American Society of Civil Engineers released a report card for 2025 that gave California’s roads and highways a “D” rating. Indeed, about 30% of the state’s roads and highways “are in poor condition,” which is much worse than the national average.

So I end this segment with the question: Why do We the Voters allow this to happen?

Judge Jim Gray (Ret.), with substantial help from my wife -- Thank you Gracie!

(One final thought to share with you: “I was addicted to the Hokey Pokey but, thankfully, I turned myself around.”)