The following comments were shared with the California Energy Commission for their meeting this past September on California’s vulnerabilities to petroleum price hikes. The comments were intended to stimulate conversations and seek recommendations about California being transparent at the pump, with stickers, for the public to see, as to what makes up the cost of the fuels they are purchasing.
Government and special interest groups have been successfully HIDING behind the price of transportation fuels that INCLUDES all taxes and state programs costs that the industry has absolutely no control over. The oil industry – by law – merely collects those taxes from consumers and remits them to the government.
Every taxable item we buy, such as clothes, food, cars, computers, including the 100’s of millions of products on Amazon, etc. applies taxes AFTER the purchase. The advertised price of every taxable item, except gasoline, ALWAYS EXCLUDES sales tax and Federal and State Excise taxes.
On November 1st, the “cost” of the fuel did not change, but the price at the pump increased as a result of SB1 taxes that went into effect to raise funds for transportation infrastructure.
As of November 1st, the following costs will be “hidden” from the posted pump prices, for the public’s viewing and education: In the interest of transparency, the following “picture” should be a sticker at the pump for those costs imposed by consumers’ elected and appointed representatives!
November 1, 2017 Taxes and Fees
Gasoline
Excise Taxes and Fees
Federal Fuel Tax 0.18
State Fuel Tax 0.42
State UG Tank Fee 0.02
Sales tax 0.09
Climate Change and Renewable Fuel costs
Cost of Renewable Fuels standard 0.07
Cost to fuel of LCFS 0.04
Cost to fuel of Cap and Trade 0.11
Total taxes and fees $0.99
Diesel
Excise Taxes and Fees
Federal Fuel Tax 0.24
State Fuel Tax 0.36
State UG Tank Fee 0.02
Sales tax 0.09
Climate Change and Renewable Fuel costs
Cost of Renewable Fuels standard 0.07
Cost to fuel of LCFS 0.02
Cost to fuel of Cap and Trade 0.14
Total taxes and fees $1.25
Such stickers, in full view at the pump, would provide transparency to the public for costs imposed on those consumers by their elected and appointed representatives.
What better time in California than November 1st, when SB1 hits consumers’ pocket books, and when gasoline State excise tax increases from 18 to 30 cents, and diesel from 16 to 36 cents, to introduce this common-sense tax disclosure measure?
Other cost increases are driven by legislative actions intended to reduce emissions for which the public has been very supportive of the emissions crusade regardless of costs.
In the years ahead, the state Legislative Analyst’s Office (LAO) estimates that Cap and Trade, and the Low Carbon Fuel Standard (LCFS) could raise fuel prices to record heights. These government-imposed costs should be honestly disclosed to the consumer, at the pump. This disclosure, may need to be updated annually to reflect the increasing costs associated with the Cap and Trade and the LCFS in the years ahead, which collectively are projected to exceed another $1.00 increase within the next 10 years.
There’s an old saying: “sunshine is the best disinfectant.” Perhaps shining a visible light on the dirty little secret of hidden fuel taxes would motivate lawmakers to think twice before inflicting additional pain on California’s already over-taxed consumers.