Refiners are rewarded for using more biofuels. If they don’t meet CARB’s benchmark, they must buy regulatory credits. The program adds an estimated 22 cents per gallon to the price, according to WSPA.
In 2017, Democrats raised the state’s gasoline excise tax by 12 cents per gallon and linked it to inflation. California also imposes a sales tax on gasoline. So when the wholesale price of gasoline rises, drivers pay even more in taxes.
Californians pay about 73 cents per gallon in state taxes compared to 39 cents nationwide and 44 cents in Florida, 25 cents in Arizona and 20 cents in Texas.