California gas tax debate grows as drivers feel strain at the pump

SAN FRANCISCO (KGO) -- As Californians watch gas prices climb, renewed attention is being paid to the state's gas tax and whether it should remain that way as drivers feel the strain at the pump.

On Tuesday, the average price for gas in the Bay Area topped $6 a gallon. UC Berkeley energy economist Severin Borenstein says that's about $1.80 higher than the national average and that significant portion of that gap can be traced to California's taxes.

"About $1.80 of that right now is due to higher taxes, higher environmental fees, in particularly our cap and trade program, our low carbon fuel standard and the cost of using, cleaner burning gasoline blend," said Borenstein.

California's total gas tax stands at about 70 cents per gallon, the highest in the country. The next highest is Illinois at 66 cents, according to the U.S. Energy Information Administration.

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"It's unimaginable. And I keep telling myself it's temporary and not going to last. But everything is lasting," one person at the gas pump said.

While some have called for eliminating the gas tax entirely, experts caution that doing so would be difficult.

In the last fiscal year the tax brought in nearly $8 billion for California, contributing to repairing roads, maintaining highways, and public transportation.

Instead, several drivers said they would support lowering the tax or at least halting future increases.

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"For a little while so people are hurting a little bit less, I'd say I support," one driver said.

Another added, "I do care about the environment. I know what we're trying to do in California, but I wonder how far we are pushing it."

Not everyone believes California's system needs to change. Richard Alexander, speaking to us while getting gas, defended the tax structure.

"Our ability to have clean air and clean water and have smog free skies is a wonderful thing to say that we should all enjoy. And it takes a tax to do it," he said.

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Borenstein said there may be alternative approaches that could ease price volatility without fully scrapping the tax. One idea he suggested would tie the gas tax rate to the price of crude oil - lowering the tax when oil prices spike and raising it when oil prices fall.

"We wouldn't get as big fluctuations as we get right now in gas prices, when the price of crude oil goes up and down," Borenstein said. "The disadvantages it would make, California gasoline tax revenue, less certain."

California's gas tax is adjusted for inflation every July, but Borenstein said that does not necessarily determine when consumers will feel the next price jump.

"By far the biggest factor in predicting future gas prices is what's going to happen in the war," he said.