Enough with the questions.
High State Taxes and Fees
California tacks on some of the highest fuel levies in the nation.
Excise Tax: State excise tax is 48.2 cents per gallon, plus a 24.4-cent federal tax. [
1]
- Sales Tax: A 13% state sales tax (plus local additions) applies on top of the base and excise costs.
Strict Regulations and Refineries
The state's isolated fuel market requires custom-blended cleaner-burning fuels. [
1]
- Refining Loss: Refineries have converted traditional crude capacity to renewable diesel. [1]
- Compliance Costs: Stringent cap-and-trade and low-carbon rules raise wholesale baseline costs. [1]
- Market Isolation: California cannot easily import replacement fuel during shortages.