The Public Deserves Transparency of Pricing at the Pump

Gas TaxFuel prices in California are among the highest in the country, as a result of some of the highest taxes in the country, plus the costs associated with compliance with various State environmental laws, which trickle down to the consumer, resulting in Californian?s paying as much as $1 more per gallon than most folks in the country. A bill currently working its way through Sacramento is SB 1074 (Moorlach) ?Transparency in fuel taxes?.

Most everything that is bought, from clothes, computers, vehicles, etc., are based on price plus tax, except one item ? transportation fuels, as the posted price includes everything.

Case in point was SB1 for Transportation Infrastructure funding that is targeted to raise $52 billion for infrastructure projects, added 12 cents to gasoline and 20 cents to diesel on November 1, 2016. With California already having some of the highest fuel taxes in the nation, the cost of those fuels did not change last November, but the posted price at the pump did change, but was not transparent to the public as to why fuel prices went up.

Low Carbon Fuel Standard (LCFS) compliance is getting tougher to meet each year as well as more costly each year. Today, the California Energy Commission (CEC) shows that the LCFS adds 10.1 cents per gallon for gasoline, and 6.8 cents for diesel. Those costs trickle down to the consumer and are hidden within the posted price of fuel at the pump.

The CEC also shows that Fuels Under the Cap (FUTC) i.e., the ?boutique? fuel standards for gasoline and diesel required by the Federal Clean Air Act and the California Air Resources Board (CARB) to meet the state?s fuel blending requirements for reformulated gasoline standards accounts for 11.9 cents per gallon for gasoline, and 14.5 cents for diesel. Again, those costs trickle down to the consumer and are hidden within the posted price of fuel at the pump.

Cap & Trade revenues are funding the High Speed Bullet train as well as many other ?green? projects. Within numerous state government agencies, there is a feeding frenzy on getting a piece of those lucrative cap and trade ?fee? revenues for their projects. Again, those costs trickle down to the consumer and are hidden within the posted price of fuel at the pump.

The CEC shows that California fuel consumption is at the highest level since 2007. Fuels consumption for California?s 35 million registered vehicles in 2016, of which more than 90% were not EV?s, was 52 million gallons per DAY of gasoline and diesel. Sounds like a lot of fuel, but it?s only about 1 plus gallons per day per vehicle, resulting in refueling requirements every week or two.

With numerous incentives, 50% of the EVs in the nation are in one state-California, but they only represent about 7% of the 35 million registered vehicles. With the other 49 states accounting for the other 50%, it appears that nationwide, they are not endeavored by the EVs.

On a go forward basis, internal combustion engines appears to be the choice of citizens. The California economy is heavily driven by affordable transportation. Yet, Californians pay more per gallon of gasoline and diesel due to costs that are not transparent to the public.

A Yes vote on SB 1074 would expand transparency at the pump by creating a Quick Read (QR) Code that directly links the consumer with updated costs of taxes and regulated costs associated with the production of each gallon of fuel purchased would demonstrate that our elected representatives favor transparency of the costs that are included on the posted prices for fuel at the pumps to show the public why Californians are paying as much as $1 more per gallon than the rest of the nation.

On the contrary, a No vote on SB 1074 would demonstrate that our elected officials do not want the public to know why our fuel costs are among the most expensive in the country.

ounder of PTS Staffing Solutions, a technical staffing agency headquartered in Irvine.

This article was originally published by Fox and Hounds Daily