TAX NEWS - JULY 2009

California's Gas Use Down 2.5%, Diesel Drops 8.4%

Three Year Decline in Consumption Continues

Betty T. Yee, Chairwoman of the Board of Equalization (BOE), today announced that California gasoline consumption declined 2.5 percent in April from March. The figures released today show that Californians consumed a total of 1.25 billion gallons of gasoline in April, compared with 1.28 billon gallons in March.

"We've seen this decline in California gasoline consumption for three years," said Chairwoman Yee. "Consumer behavior has clearly been influenced by the economic recession, higher gasoline prices, less driving, and more fuel efficient vehicles."

In a year over year comparison, gas use fell 0.8 percent in April from the same month last year, when 1.26 billion gallons were consumed in April 2008, or 10 million gallons less in April 2009.

The average California gasoline price at the pump in April was $2.38 per gallon, a 38.2 percent decline from the average price the same month last year when it was $3.85. Gasoline sold at the lower price in April 2009 generated approximately $219 million in sales tax during that month, an estimated $138 million less than was generated in April 2008.

California diesel consumption declined 8.4 percent in April from March. The figures released today show that Californians consumed a total of 220 million gallons of diesel in April 2009, compared with 240 million gallons in March 2009. In a year over year comparison, diesel use fell 4.4 percent in April from the same month last year, when 230 million gallons of diesel fuel were sold in April 2008, or 10 million gallons less in April 2009.

With the effects of the recession, diesel consumption declined despite a steep decrease in prices. California diesel prices were $2.34 per gallon in April 2009 down 45.2 percent compared to April 2008, when the average diesel price was $4.27 per gallon.

The BOE is able to monitor gallons through tax receipts paid by fuel distributors. Figures for May 2009 are scheduled to be available at the end of August 2009. All monthly, quarterly, and annual figures can be viewed on the BOE website at: www.boe.ca.gov/sptaxprog/spftrpts.htm.