California Gas Use Up 0.6%, Diesel Fuel Use Declined 7.1% in April

Friday, Jul 30, 2010

Betty T. Yee, Chairwoman of the Board of Equalization (BOE), today released California gasoline and diesel fuel consumption figures for April 2010. The figures released today show that California gasoline consumption slightly increased 0.6 percent on a year over year basis; while diesel fuel consumption in California declined 7.1 percent in April 2010. The decline in diesel consumption was the largest since October.

“This month saw a small uptick, but recent months have shown modest declines during a roughly 80-cent per gallon increase over last year.”

“Although diesel consumption shows signs of our continuing difficulties throughout the economy, gasoline consumption is a better indicator of consumer driving and consumption habits,” said Chairwoman Yee. “This month saw a small uptick, but recent months have shown modest declines during a roughly 80-cent per gallon increase over last year.”

Gasoline consumption increased 0.6 percent in April 2010 when Californians consumed 1.255 billion gallons of gasoline compared to 1.248 billion gallons consumed in April 2009.

The average price at the pump for gasoline in California during April 2010 was $3.14 per gallon, which is an increase of 32 percent compared to April 2009 when average price at the pump for gasoline was $2.38.

Sales and use tax revenue from gasoline sales in California in April 2010 was $329 million, an increase of $110 million compared to the gasoline sold at the lower price in April 2009 that generated $219 million. The April 2010 sales and use tax revenue of $329 million includes an additional $36 million due to the one percent sales and use tax rate increase that went into effect on April 1, 2009.

Diesel consumption in April 2010 shows that Californians used 204 million total gallons, which is a 7.1 percent decline than the total of 220 million gallons of diesel that Californians used in April 2009. Diesel prices in California in April 2010 were $3.21 per gallon, which is an increase of 37 percent compared to April 2009 when California diesel prices were lower at $2.34 per gallon. Diesel consumption generally follows economic activity and is especially closely related to construction and transportation of goods.

The BOE is able to monitor gallons through tax receipts paid by fuel distributors. The figures reported monthly are net consumption that includes BOE audit assessments, refunds, amended and late tax returns, and State Controller’s Office refunds. Figures for May 2010 are scheduled to be available at the end of August 2010. All monthly, quarterly, and annual figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm.

Source: Business Wire