NewsLocal News


Breaking down the price of a gallon of gas

Posted at 5:10 PM, Mar 15, 2022
and last updated 2022-03-15 20:26:33-04

SAN DIEGO (KGTV) — San Diego gas prices climbed to another record high Tuesday of $5.77 cents per gallon. The war in Ukraine isn't the only reason they're going up.

A new breakdown from energy consulting firm Stillwater Associates dug deeper into what costs go into each gallon of gas.

"California has historically had higher gasoline prices than the rest of the U.S., a trend which is attributable to the state’s unique gasoline specifications, environmental and greenhouse gas fees, isolation from alternate fuel supply sources, and higher cost structure to produce and market gasoline," said the analysis, written by Leigh Noda.

Using the March 8 price of $5.45 per gallon, it found that the price of crude oil made up the bulk of the charge, at $2.99.

Tack on the federal 18 cent per gallon tax, the state's 51 cent per gallon tax, and another 18 cents in California sales tax. That only adds to $3.86, meaning there's another $1.59 to fill out the price.

Refinery cost and profit add another 72 cents, and gas station profit 33 more. Environmental and storage fees round out the remaining 54 cents.

Moving forward, Stillwater Associates notes California's per-gallon gas tax is scheduled to rise July 1. It also expects an increase in the cap and trade carbon fees.