California Gasoline Consumption Declining for Five Quarters

Gasoline consumption in California fell for the fifth consecutive quarter, declining 0.4 percent, as gasoline prices went up 10.9 percent in the first quarter of 2012, according to a report released today by Chairman Jerome E. Horton of the California State Board of Equalization (BOE). Editor’s note: See chart of year-over-year quarterly gasoline consumption comparisons.

“With another quarter of soaring gasoline prices—the California average price in the first quarter was $4.06—Californians might be altering their driving habits. But for a state that’s still heavily dependent on the automobile, that’s a slow, painstaking process,” said Horton.

First quarter average gasoline prices were up 40 cents to $4.06—a 10.9 percent increase—while the average price in March was up 41 cents to $4.41. Total gasoline consumption for the first quarter declined 15.7 million gallons compared to the first quarter last year, for a total of 3.6 billion gallons used.

Diesel fuel consumption increased 1.7 percent compared to a year ago, as California consumed an additional 10.1 million gallons, for a total of 597 million gallons in the first quarter. In California, diesel averaged $4.28 a gallon, up 43 cents—an 11.2 percent increase—from last year’s first quarter. Both gasoline and diesel fuel prices in California continued to be higher than the national average price.

Nationally, regular gasoline averaged $3.66 a gallon, up 32 cents from last year’s first quarter according to the U.S. Energy Information Administration (EIA). The EIA diesel retail prices reported the national average price of diesel was up 34 cents to $3.97—an increase of 9.4 percent in the first quarter from a year earlier.

In March, a survey and resulting graphic from AAA identified how drivers are changing their behavior to help offset higher prices at the pump. AAA concluded: “As a result of current gas price increases, 84 percent of (AAA) respondents have already changed their driving habits or lifestyle in some way. Combining trips and errands was the most commonly reported cost-cutting measure with 60 percent of respondents reporting having already made this adjustment.”

BOE monitors gasoline consumption using tax receipts paid by fuel distributors in California. BOE updates the fuel reports at the end of each month.

California Fuel Statistics and Reports www.boe.ca.gov/sptaxprog/spftrpts.htm

State Taxable Gasoline Gallons Report: www.boe.ca.gov/sptaxprog/reports/MVF_10_Year_Report.pdf

State Taxable Diesel Gallons Report: www.boe.ca.gov/sptaxprog/reports/Diesel_10_Year_Report.pdf

Elected in 2010, Chairman Jerome E. Horton is the Fourth District Member of the California State Board of Equalization, representing more than 8.5 million residents in Los Angeles County. He is also the Board of Equalization Legislative Committee’s Chairman.  He is the first to serve on the Board of Equalization with over 21 years of experience at the BOE. Horton previously served as an Assembly Member of the California State Assembly from 2000-2006.

The five-member California State Board of Equalization is a publicly elected tax board. The Board of Equalization collects more than $50 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.