California gas tax cut unlikely to show up at pump

OREANDA-NEWS. California regulators voted to lower the state's gasoline tax on Tuesday by 6?/USG, but drivers may not see a difference at the pump.

Starting this summer, the California gasoline tax will decline by 6?/USG, slightly less than the 7.5?/USG cut originally proposed in a recommendation to the California Board of Equalization (BOE). The BOE's unanimous vote Tuesday in favor of the cut would decrease the total tax from 36?/USG to 30?/USG for one year effective 1 July, 2015.

The BOE also voted to raise the diesel fuel tax to 13?/USG from the previous 11?/USG.

The agency said consumers were unlikely to see a difference at the pump as suppliers are not forced to pass on the difference.

Current state law requires the BOE to annually administer changes to the state's complex fuel-swap tax system, which was enacted in March 2010. The system adjusts the excise tax each fiscal year as part of a move to contribute to the California general fund.

Under the new California cap-and-trade system enacted at the beginning of 2015, the per-gallon fees for gasoline levied at the pump have already risen by 10?/USG, based on assessments by Argus. The fees for diesel have increased by roughly 13?/USG.