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California Gasoline Demand Rose for Month and Quarter SACRAMENTO, Calif.--(BUSINESS WIRE)-- Betty T. Yee, Chairwoman of the Board of Equalization (BOE), today (September 30th, 2009) released gasoline consumption figures for June and total figures for the second quarter of 2009. This is the first quarterly increase in more than three years, since the first quarter of 2006 “While there is a very slight up-tick in the consumption numbers, at the same time the price of gasoline has dropped dramatically. This most recent data indicates while more gasoline was used, it wasn’t to the degree expected with the significantly lower prices,” said Chairwoman Yee. In June 2009, gasoline demand rose 1.6 percent when Californians used 1.234 billion gallons of gasoline compared to 1.215 billion gallons the same month last year. The average California gasoline price at the pump in June was $2.97 per gallon compared to $4.53 in June 2008, a 34.4 percent decrease from a record high price. In the second quarter of 2009, gasoline consumption increased 0.45 percent when Californians used 3.773 billion gallons of gasoline compared to 3.756 billion gallons the second quarter last year. Gasoline sold in June generated approximately $301 million in sales tax during that month, an estimated $104 million less than generated last year. June sales tax revenues from gasoline would have been about $34 million less had not the state portion of the sales and use tax rate increased from 5 percent to 6 percent on April 1, 2009. Diesel fuel sold in California during June totaled 223.6 million gallons compared to June’s last year total of 260.4 million gallons, which is a decline of 14.2 percent. California diesel prices were $2.70 per gallon in June 2009 down 45.7 percent compared to June 2008 when the average diesel price was $4.97 per gallon. While the diesel gallons reflected in the June numbers are down 36.9 million gallons, indicating a decline of 14.2 percent, the reduction in consumption is likely to be less. The actual decline may be closer to 18.5 million gallons, a decline of 7.1 percent, because the June 2009 figures include refunded gallons of 18.4 million gallons. The gallons included in the monthly consumption numbers are always net of audit assessments and refunds, but the June 2009 refunds were greater than most and may have skewed the actual amount of decline. Diesel consumption in California declined 8.8 percent in the second quarter of 2009 when Californians used a total of 653 million gallons of diesel compared to the second quarter of 2008 total of 716 million gallons. Diesel consumption generally follows economic activity and is especially closely related to construction and transportation of goods. These sectors were particularly hard hit during the recession, and have yet to start to increase. The BOE is able to monitor gallons through tax receipts paid by fuel distributors. California fuel figures for July 2009 are scheduled to be available at the end of October 2009. All monthly, quarterly, and annual gasoline and diesel figures can be viewed at: www.boe.ca.gov/sptaxprog/spftrpts.htm. The five-member California State Board of Equalization is a publicly elected tax board. The BOE 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. For more information on other taxes and fees in California, visit www.taxes.ca.gov. Source: California State Board of Equalization |
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