California is struggling to maintain affordable gasoline rates.

California’s Department of Tax and Fee Administration reports that the state’s petrol excise tax is 51 cents per gallon, up from 47 cents per gallon in June 2020.

On Monday, a Republican proposal to repeal the state’s gas tax was defeated. According to reports, the idea would have saved Californians 50 cents per gallon, causing dissatisfaction and alarm among individuals tired of gas price adjustments and the need for state officials to assist.

“What are we doing in the state to ensure that we all have an inexpensive and dependable supply of energy?” asked Kevin Slagle, Director of Strategic Communications for the Western States Petroleum Association.

This is a question that many, including Kevin Slagle, are considering. He adds that there has been considerable talk about temporary remedies to the rising cost of gasoline. He did, however, acknowledge that further work is necessary.

“More output entails a greater focus on our sector and how we may contribute to an all-encompassing industry strategy. Numerous issues are being examined, but we must consider the long term.”

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According to Slagle, the first $1.27 of the $1.27 you pay at the pump is used to state, local, and federal taxes, while the remainder is applied to regulatory fees for programs such as cap and trade and low carbon fuel requirements.

Slagle notes that it’s critical to remember that the total dollar amount spent per gallon may vary by a penny or two depending on the local sales tax.

“It might be a couple of cents more or lower in various locations. At the municipal level, local jurisdictions will be responsible for taxation. When it comes to certain state programs, the governor and some of the regulatory organizations are ultimately responsible.”

The increase in gasoline prices has also affected the allocation of the state’s 1% local sales and use tax to communities.

According to the California Department of Tax and Fee Administration, the City of Bakersfield collected $9.9 million in February 2022, a significant increase of around $7 million over January 2022.

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