California Governor Newsom should look in the mirror and not bite the hand that feeds the state, as consumers contribute more than $ 75 billion a day, or more than $ 27 billion a year, from fuel consumption by the state’s mobile fleet.
The estimated impact of California’s taxes, fees and costs on climate programs is $ 1.30 a gallon:
State special tax: 51 cents (rose again on July 1)
Federal excise tax: 18 cents
Low carbon fuel standard: 22 cents
State and local sales tax: 12 cents
State underground storage tax: 2 cents
Total cost of California taxes, fees, and climate programs: $ 1.30 per liter
Drivers need to be aware of the reality that every time they add 16 liters of fuel to the vehicle, $ 1.30 a liter contributes $ 20 to government programs per tank. Where is the responsibility for these programs?
California drivers who pay $ 6.50 per gallon give the government 20 percent of the bill per liter. If the cost of crude oil ever drops, gasoline can go back to $ 4 a liter, then the government fee is more than 30 percent per liter.
What’s more, pump pain has just happened for Californians under the 1st Senate Bill. Established in 2017, the amount of the State Tax is raised every year, partly to keep pace with inflation. The scheduled annual gas tax increase occurred on July 1, 2022, with a 5.6 percent increase, which is a jump of 2.8 cents per liter, a 2.8-cent jump.
According to the California Energy Commission, in 2015, 29 million vehicles were registered in California. The fuel consumption of California’s mobile fleet was 48 million gallons of gasoline and 10 million gallons of diesel per day. A total of 58 million liters of fuel per day.
California collects $ 1.30 in taxes, fees and costs for state climate programs per liter, with 58 million gallons of fuel consumed daily for more than $ 75 million a day or more than $ 27 billion a year for government spending.
So who is the real profit from fuel sales? Yes, it is the government.
Governor Newsom is doing everything it can to get rid of California oil, its ongoing efforts to reduce oil exploration in the state, and an order not to buy internal combustion engines from 2035 onwards. As it will not be in 2035, it continues. Silently what new taxes would be needed to replace the billions of dollars that will be deducted from the box as fuel consumption is reduced with the order to buy electric vehicles.
California Governor Newsom recently asked the California Energy Commission to investigate fuel costs. Following a request for an investigation into fuel costs by state attorney general Newsom, California Democrats need to investigate the cause of high gas prices.
It’s a shame that California Democrats, who were firmly opposed to the transparency of all costs flowing at prices published at the pump, are seeking profit transparency from California oil refineries, which is why California gas prices are the highest in the country. It’s time to turn the mirror around to the governor and the Sacrament.
In recent years, California has closed two refineries (Phillips66 at Rodeo and Martinez at Marathon), which once manufactured many products, and are now focusing solely on renewable diesels. If the courts recently approved a Bay Area Air Quality Management rule to further reduce particulate emissions, both Richmond’s Chevron refinery and Martinez’s PBF refinery have said they will close to renovate the refinery before spending $ 1 billion. more particulate emissions.
With the potential loss of two other refineries, gasoline and jet fuel to supply military bases in northern California, the major airports in San Francisco, Oakland, San Jose and Sacramento will be imported from China, along with many other products that have not closed California refineries. manufacturing.
We need transparency and accountability to account for all government costs thrown at the protested price at the pump, not an investigation that is reducing the number of suppliers. Governor, California taxpayers deserve an explanation.
Ronald Stein is the co-author of the book “Clean Energy Exploitations” nominated for the PE Pulitzer Prize and is a policy advisor at the Heartland Institute on Energy.
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