Get the Facts

Cap and Trade for Fuels

CARB’s New Hidden Gas Tax Could Add Up to 76 Cents per Gallon to Fuel Costs

The cap-and-trade for fuels is a regulation already adopted by the California Air Resources Board that will increase the cost of gasoline and diesel fuels by up to 76 a cents a gallon, according to the agency’s own analysis!


Fuel Supply

  • California is the 3rd largest gasoline consuming market on earth, behind only the United States as a whole and China
  • California consumes about 41 million gallons of gasoline and 11 million gallons of diesel fuel a day
  • To supply the state’s demand for fuel, California refineries produce 2 million gallons of gasoline and diesel fuel per hour, every day, 365 days a year
  • California uses an average of 6.4 billion cubic feet of natural gas a day

Fuel Markets

  • California fuel markets are tightly balanced, meaning the supply of fuels from California refineries is roughly the same as the demand for those fuels
  • California is a fuel island. Refineries here are not connected to other refining centers in the US by pipelines as they are in other regions of the country
  • California’s 14 fuel refineries receive 38 percent of their crude oil from California, 12 percent from Alaska and 50 percent from foreign sources
  • The cost of crude oil is the largest component in the cost of gasoline and all crude oil produced in California is used in California refineries

Join the Conversation on Twitter