Senator George Runner
Serving the 17th District which incorporates portions of the Los Angeles, San Bernardino, Ventura and Kern counties.

California’s gas prices are the third highest in the nation, hovering around the $3.00 per gallon mark at the end of October. The average price of gas over the past three weeks for all 50 states was closer to $2.60 per gallon. So why are gas prices so much higher in California?

To begin with, California charges the highest gasoline taxes in the nation. California even collects a tax on a tax by charging sales taxes on the state and federal excise tax!

In California, taxes on fuel account for roughly 65 cents per gallon, which includes the state sales tax rate of 8.25%, plus 1.2 cents per gallon for Underground Storage Tank (UST) fees, plus additional local sales taxes where applicable. In Sacramento County, sales taxes are 8.75%.

We also pay more in California because of stringent environmental laws dictating that we use reformulated gasoline, which can only be supplied by a limited number of refineries. So when one of them shuts down, as the Tesoro refinery in Los Angeles did earlier this year due to a fire, the supply is reduced enough that prices inevitably rise.

With our state’s unemployment rate over 12% (and far beyond that in many counties), and the economy still a long way from being robust, these soaring gas prices put an undue burden on the people of California who are struggling to make ends meet.

Now more than ever we should be taking advantage of our own natural oil reserves, like the huge oil and gas deposits sitting 5 miles off the coast of Santa Barbara. The Tranquillon Ridge Project has bi-partisan support, and the support of the local government officials and environmental groups. It would bring in $100 million in royalties to the state immediately upon approval, and up to $4 billion in revenues to the state over the next 14 years, as well as help end our dependence on foreign oil.

With some of the highest gas prices in the nation, and the economy still struggling, California lawmakers need to stop raising our taxes, and start taking advantage of our own natural resources and potential revenue sources. Just food for thought, for the next time you’re filling up your tank.