By DAILY PRESS STAFF
DOWNTOWN Drivers here and across the state continue to consume less gasoline, around 65 million fewer gallons compared to this time last year, according to figures released for the month of May by the State Board of Equalization.
Californians used 4.8 percent less gas in May than they did a year ago, however, that number is up slightly (2.1 percent or 26.2 million gallons) compared to April, in part because of the Memorial Day holiday, said Judy Chu, chair of the board. The numbers show an overall downward trend, much of which can be attributed to high gas prices.
The average California gas price at the pump rose from $3.85 per gallon in April to $4.02 in May 2008, which was 15.2 percent above the average price of May 2007 when it was $3.49. The board estimates that nearly twice as much sales tax is generated annually by higher gasoline prices than five years ago. Those higher prices generated approximately $3.6 billion in sales tax during 2007 when the average price was $3.12. In contrast, 2003’s gasoline sales generated $2.1 billion when the average pump price was $1.88.
May 2008 diesel fuel sold for use on California roads totaled 225 million gallons, which was 11.0 percent below that of May 2007. A month to month comparison shows that in May 2008 Californians used 4.9 million (2.1 percent) gallons less diesel than April 2008.
The decreased consumption reflects both the impacts of higher diesel prices and the slowing economy,which is associated with less freight movement on California roads and highways, Chu said. California diesel prices were up 58 percent compared to May of 2007.
The board is able to monitor gallons through tax receipts paid by fuel distributors. Figures for June 2008 are scheduled to be available near the end of September. All monthly, quarterly, and annual figures can be viewed on the board’s Web site at: www.boe.ca.gov/sptaxprog/spftrpts.htm The five-member California State Board of Equalization is a publicly-elected tax board. It collects more than $53 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.
Originally published in the Santa Monica Daily Press print edition on August 29, 2008. Read the original PDF.