Reform California releases new $2 gas tax calculation that takes into account the state’s costly regulations

Earlier this week, Reform California released a full calculation of the real gas tax we’re paying for each gallon we pump. As broken down below, the current tax is $1.43 per gallon – but new mandates will spike it to two dollars.

That’s because the California Air Resources Board (appointed by state politicians) is imposing a costly new fuel standard that will spike the cost by an additional 52 cents by 2026 – and we also see a new yet-to-be-determined oil/gas penalty tax from the CA Energy Commission.

“California is already suffering from the highest gas tax and gas prices in the country, but now the gas tax is set to increase and hit $2 per gallon,” said Carl DeMaio, chairman of Reform California and a candidate for State Assembly.

DeMaio is proposing that the cost be cut through a “Gas Tax Repeal and Rebate” campaign.

“One of the first bills I will introduce in the Assembly – and the Reform California Caucus will prioritize – is a bill to immediately cap California’s gas tax so it never exceeds the national average. The bill will also immediately provide every driver with a $1,000 rebate because California politicians have engaged in predatory price-gouging with their costly gas taxes,” said DeMaio.

Here is the full gas tax breakdown
State excise tax: 59.6 cents (automatically increases july 1 each year)
Cap and Trade tax: 28 cents
Sales tax: 12 cents
Carb regulation costs: 23 cents (today), increases to 75 cents (2026)
Underground storage regulation costs: 2 cents
Federal excise costs: 18.4 cents
Oil/gas penalty tax: tbd
Total per gallon ca gas tax: $1.43 today, $1.95 by 2026

“California’s liberal politicians love to lie that the gas tax only includes the state excise tax, but it actually includes a number of costly hidden taxes and fees, and the problem will only continue to get worse unless we call out their scam, fight back, and demand they repeal the gas tax,” said DeMaio.