Californians Using More Gas; Consumption Rises at Fastest Rate Since '04

California’s gasoline consumption rose 1.6% in the fourth quarter 2013, faster than any quarter since 2004, associated with relatively low prices during that period and an improving economy, according to data released Friday by California State Board of Equalization (BOE) Member George Runner.

“It’s a good sign for our economy and jobs when Californians put more gas in their vehicles,” said Runner. “I hope we’ll see continued growth in activity and travel when lower gas taxes take effect this summer.”

The increase in gasoline consumption likely reflects increases in employment and generally falling prices throughout most of the year. In calendar year 2013 gasoline consumption rose 0.2 percent, following two years of declines.

The BOE’s state taxable gasoline gallons report reveals Californians consumed 3.631 billion gallons of gasoline in the fourth quarter, a 1.6 percent increase from 3.575 billion gallons used in a year over year comparison to the fourth quarter of last year. The average price of gasoline was $3.70 per gallon in California during the fourth quarter, and nationally the average price of gasoline was $3.37, according to the Energy Information Administration. 

The BOE’s fuel revenues show quarterly estimates of excise taxes and sales and use taxes associated with gasoline for the fourth quarter are $381 million in sales taxes and $1.4 billion in excise taxes.

Diesel consumption rose 6.8 percent in the fourth quarter, faster than any quarter since 2005. For calendar  year 2013, diesel consumption increased 4.1%, reflecting increased movement of goods associated with an improving economy. The BOE’s state taxable diesel gallons report shows California’s diesel fuel consumption was 698 million gallons, compared to 653 million gallons during the fourth quarter of last year. 

In California, the average price of diesel fuel in the fourth quarter was $4.09 per gallon, and the nationwide average price of diesel fuel was $3.87. The BOE’s fuel revenues show quarterly estimates of excise taxes and sales and use taxes associated with diesel for the fourth quarter are $245 million in sales taxes and $81 million in excise taxes.