>California Gasoline Use Drops 3.3%, Diesel Down 4.3%

May 02, 2010 Decline in Consumption Continues to Follow Economic Activity.

Jerome E. Horton, Vice Chair of the California State Board of Equalization (BOE), has released California gasoline and diesel consumption figures for January 2010. Gasoline consumption decreased 3.3 percent, while diesel consumption declined 4.3 percent compared to January 2009.

Gasoline consumption declined 3.3 percent in January 2010 when Californians used 1.17 billion gallons of gasoline compared to 1.21 billion gallons in January 2009. The average price at the pump for gasoline in California during January 2010 was $3.07 per gallon compared to $2.05 in January 2009, a 49.8 percent increase.

Sales tax revenue generated from gasoline sold in California was approximately $300 million in January 2010, which is an estimated $116 million more than the approximately $184 million in sales tax generated during January 2009 when gasoline sold at the lower price. Sales tax revenues from gasoline in January 2010 would have been about $33 million less if the sales tax rate had not increased by one percent on April 1, 2009.

Diesel consumption in California declined by 4.3 percent in January 2010 when Californians used 188.7 million gallons compared to 197.3 million gallons in January 2009. Diesel prices in California were $3.00 per gallon in January 2010 up 30.4 percent compared to January 2009 when the average diesel price was $2.30 per gallon.

The BOE is able to monitor gallons through tax receipts paid by fuel distributors. Figures for February 2010 are scheduled to be available at the end of May 2010. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.

Vice Chair Jerome E. Horton is the 4th District Member of the BOE, representing more than 8.5 million residents in Los Angeles County. He is also the BOE Legislative Committee chair. Horton is the first African American to serve on the BOE since its inception in 1879, and the third African American constitutional officer in California´s history. Horton was appointed by the Governor and confirmed by both the Assembly and the Senate in 2009. Horton previously served as an Assembly member from 2000-2006.

The five-member California State Board of Equalization is a publicly elected tax board. The BOE collects more than $53 billion annually in taxes and fees supporting state and local government services. It hears business tax appeals, acts as the appellate body for franchise and personal income tax appeals, and serves a significant role in the assessment and administration of property taxes. For more information on other taxes and fees in California, visit www.taxes.ca.gov.