Record Number of Californians Hitting the Road: Largest Gas Consumption Increase Since 2003

Citing lower gas prices and a strengthening state economy, the California State Board of Equalization announced this week that gasoline consumption rose 2.4 percent during the last fiscal year– the largest yearly increase since 2003-2004.

“Lower gas prices mean Californians can do more with less,” said BOE Vice Chair George Runner. “With more Californians back on the road, it’s time for the governor and Legislature to prioritize improving our infrastructure without raising taxes.”

In total, 14.921 billion gallons of gasoline were used in fiscal year 2014-2015, during which time the average price of gas was $3.42 per gallon, the BOE said. That makes for a 2.4 percent usage increase from the 14.574 billion gallons of gasoline used in fiscal year 2013-2014, during which time the average price of gasoline was $3.92 per gallon.

What’s more, officials say the trend of rising gasoline consumption continued into the third quarter of 2015, increasing 2.7 percent from the third quarter of 2014.

Though the lower costs of fueling up likely play a large role in increased usage, officials also say the stronger economy is key.

“More Californians are finding employment and driving to work, according to BOE’s chief economist,” the agency said.

Thanks to all these drivers hitting the road, “...BOE gasoline revenue estimates for sales and use taxes and excise taxes came in at $1.470 billion for sales and use tax and $5.371 billion for excise tax, while BOE estimates for diesel revenue for sales and use taxes, and excise taxes were $830.2 million and $357.7 million respectively,” officials said.

(Image via Shutterstock; graph courtesy of the BOE)