May 16, 2016 - Sacramento – More Californians hit the highway in the fourth quarter of 2015 than 2014, with drivers purchasing 3.799 billion gallons of gasoline in 2015 compared to 3.715 billion gallons in 2014, announced Board of Equalization (BOE) Member George Runner. This is the most gasoline purchased in the fourth quarter since 2007 when drivers bought 3.902 billion gallons—2.7 percent more than this year.
The average fourth quarter price for gasoline in 2015 was $2.63 per gallon (minus sales tax), according to the U.S. Energy Information Administration. This is the lowest fourth quarter price for gasoline since 2008, when it was $2.39 per gallon.
“An improving economy and lower gas prices have made it easier for Californians to hit the road,” said Runner. “It’s clear people prefer to travel in their cars, so roads must be a priority.”
Gasoline excise tax revenue for the fourth quarter of 2015 is estimated at $1.138 billion and sales tax is estimated at $323 million. Excise tax funds highways and mass transit, while sales tax revenue from gasoline funds various local government programs.
Diesel consumption rose in the fourth quarter of 2015 to 715 million gallons compared to 710 million in 2014. This is a 0.7 percent increase.
The average base price of diesel in the fourth quarter of 2015 was $2.35 per gallon. In 2012, it was $3.68 per gallon in the fourth quarter.
According to the BOE’s Chief Economist, higher diesel consumption is consistent with a growing economy.
Diesel excise tax revenue for fourth quarter 2015 is estimated at $102 million. Sales tax revenue for diesel was $159 million in the fourth quarter.
Taxable Gasoline Gallons: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf
Taxable Diesel Gallons: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf
Estimated Fuel Excise Tax and Sales Tax Revenues: www.boe.ca.gov/legdiv/pdf/FuelRevenues.pdf
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Source: BOE
