How much do you pay in taxes and fees for gas in SLO County? Here’s the breakdown

Kaytlyn Leslie
·5 min read
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San Luis Obispo County is routinely home to some of the most expensive gas in the country.

That was certainly the case on Wednesday, when the county sat comfortably in the list of the top 10 highest national gas prices by metropolitan area, with an average price per gallon of $5.97, according to GasBuddy.com.

It ranked at No. 8, below Los Angeles ($6.19/gallon), Ventura ($6.18), Orange County ($6.17), San Diego ($6.11), Santa Barbara ($6.04), Riverside ($6.02) and San Bernardino ($6) and above San Francisco ($5.84) and Salinas ($5.80).

That news that should come as no surprise to most local drivers since the region is more often than not home to the unenviable title of most expensive gas in the nation — but how much of a role do national, state and local taxes and fees play in setting the number drivers see at the pump?

According to an April GasBuddy report, Californians paid the highest taxes and fees on gas in the country — and that was ahead of a planned increase in the state’s gas tax in July.

As of Sept. 11 — the most recent date the data is available from the California Energy Commission — Californians were paying an estimated $5.25 a gallon on average, of which $1.44 was taxes and fees.

Gordon Schremp, a senior energy analyst with Stillwater Associates, told The Tribune that California has a somewhat unique tax and fee setup that contributes to its higher prices.

Beside the standard federal excise tax of 18.4 cents — which is the same across the United States — California charges its own state excise tax, environmental fees for its cap-and-trade program to lower greenhouse gas emissions and fund the state’s low-carbon fuel programs, underground gas storage fees and of course, sales tax, Schremp said.

Here’s roughly how that breaks down per gallon:

  • 58 cents in state excise tax

  • 18.4 cents in federal excise tax

  • 55 cents for environmental fees

  • 2 cents for underground gas storage fees

  • Approximately 12 cents for state and local sales tax (this exact amount varies across the state)

Meanwhile, as of Sept. 11, crude oil cost $2.22 per gallon, according to the California Energy Commission. The cost to refine the oil was approximately $1.20 per gallon, leaving a roughly 38-cent margin for gas stations to cover their costs and make a profit.

All of this contributes to the price you see at the pump.

“It’s funny that people think that, ‘Well, gosh, if the price of crude is this, how come it’s $5 (at the pump)? That must all be profit by the refiners,” Schremp said. “Well, actually, no — there’s these fees, environmental fees, we’ve been talking about. There’s the taxes we’ve been talking about. And then there’s the costs and profits for both the refiners — you have costs and profits in there that are passed along to consumers — and retailers have costs and profits in there.”

Schremp said though the taxes and fees stay roughly stable, it’s the changing cost of crude oil that can cause those huge price fluctuations, as refineries and then individual gas providers have to adjust their prices to try to sustain a profit.

This can lead to an “up like a rocket, down like a feather situation” with gas prices, he said, where gas stations are forced to increase prices when crude costs more, and then they don’t fall as rapidly because the retailers “don’t really lose customers.”

“Retail is able to command higher margins for longer periods of time,” Schremp said. “It’s just interesting changes that have occurred in California’s market.”

To help combat that, Schremp encouraged folks to shop around when buying gas and try to fill up their vehicles when prices are low, rather than waiting to last minute when they might have to settle for more expensive options.

How do local sales taxes impact SLO County gas prices?

Beyond pricing differences set by individual gas providers, depending on where you are in California, you could also be paying slightly more or less for your gas thanks to slight disparities in sales taxes.

The state adjusted its sales tax for gasoline purchases to 2.25% in 2010, rather than the higher standard for other goods, but local jurisdictions like counties, cities and transportation districts may approve additional sales taxes that count on top of that.

All of San Luis Obispo County’s seven incorporated cities have approved various sales tax increases over the years, meaning customers in those areas are paying a slightly higher tax when they purchase gas compared with the county’s unincorporated areas.

In Atascadero, Grover Beach, Morro Bay, Paso Robles and San Luis Obispo, the sales tax for gas comes out to 3.75%, while in Arroyo Grande and Pismo Beach it is 2.75%.

SLO County’s unincorporated communities like Nipomo, Los Osos and Templeton meanwhile pay the state minimum sales tax for gas of 2.25%.

So what does that look like in San Luis Obispo County?

Here’s an example of how much drivers pay in taxes and fees — including state and local sales taxes — per gallon by city.

  • Arroyo Grande and Pismo Beach: $1.48

  • Atascadero, Grover Beach, Morro Bay, Paso Robles and San Luis Obispo: $1.53

  • Unincorporated SLO County: $1.45

Note: These numbers assume an average pre-tax price per gallon of $3.83, based on the California Energy Commission’s most recent Sept. 11 estimates. The actual current amounts will vary because of differences in crude oil, refinery and distribution costs, as well as individual gas stations’ profit margins.

But how does this compare to other places in the rest of California? Here’s a look at a few other nearby cities and how much they pay in taxes and fees.

  • Santa Maria: $1.53

  • Santa Barbara: $1.53

  • Monterey: $1.55

  • Salinas: $1.55

  • Fresno: $1.51

  • Bakersfield: $1.50

Want a closer look at how those prices all compare? Check out the charts below for a deep dive into the gas prices breakdown.