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Bill Introduced to Shed Light on High California Gas Prices


SACRAMENTO- Today, Assemblyman Tom Lackey (R-Palmdale) introduced legislation to increase gasoline price transparency. Assembly Bill (AB) 2066 would require gas stations to post the estimated cost per gallon of the state’s Cap and Trade Program, where they are already required under current law to display federal and state fuel taxes.

In 2015, California became the first state in the country to require gasoline and diesel fuel suppliers to purchase emission credits under the Air Resources Board’s Cap and Trade Program. Estimates by the non-partisan Legislative Analyst’s Office have concluded that this will likely add 13 to 20 cents per gallon to prices by 2020, while a February meeting of the California Energy Commission estimated it increases current prices by approximately 10 cents. However, while federal and state gas tax amounts are readily identified at fueling locations, the specific cost of the state’s Cap and Trade Program on the price of a gallon of gas is not.

“Every day, nearly 100,000 people leave my community in the Antelope Valley to commute long distances to work in Los Angeles. These families are forced to spend large amounts of their monthly budgets on gas,” said Assemblyman Lackey. “Californians deserve to have more transparency about why they pay higher prices than drivers from other states.”

As global oil prices have plummeted, California drivers are still experiencing higher-than-average gas prices. According to the AAA Daily Fuel Gauge Report, California’s average price is the second most expensive in the nation at $2.38 per gallon—nearly 70 cents higher than the national average. Fuel refinery problems have been cited as a possible reason for stubbornly high prices. However, without more information on the costs added by the Cap and Trade Program, consumers are left even more in the dark.

“We strongly value transparency for our customers, and providing this information on government-imposed costs at fueling locations is critical for ensuring their understanding of fuel pricing,” said Jay McKeeman, VP of Government Relations from the California Independent Oil Marketers Association.

AB 2066 would provide clarity on the costs of Cap and Trade by also requiring the California Energy Commission to calculate average costs per gallon using the latest auction prices for carbon credits. This will lead to an accurate estimate of what drivers are paying.


  • Atlantic Richfield says:

    Don’t just stop with the gas manufacturers, also there’s the county taxes, and many small cities now are adding additional taxes sales taxes to the gas pump CALLED CITY TAXES!!

    We are just being taxed to death with all kinds of various groups of taxes on a gallon of gas.

    Take it one step further, OUR utilities in Southern California are getting to be almost as much has a house payment. We are just paying for a lot of wasted Unions controlling our utilities. If this state was so eager to help us, they would start manufacturing large solar collector plants, so everything eventually can be clean/ and renewable energy.

    Stop burdening us with hi price at the pumps, we never asked for TV on the pumps, nor Bullock Wilshire type of Convenience store at gas stations. Stop all of the digital lights, stop the Star Bucks and stop the drive thru car washes.

    One time, Artesia Blvd via city of Cerritos, was home to over 2 doz gas station, as Artesia Blvd was used by comuters before the 91 construction.