3rd Quarter 2008 Gasoline Use in California Declined 6.1%; Diesel Use Dropped 10.4%

31 December 2008

The California State Board of Equalization (BOE) released gasoline and diesel consumption figures for September and complete figures for the third quarter of 2008. The third quarter of 2008 marked the tenth consecutive three-month period to show lower gasoline consumption. In the third quarter of 2008, Californians used 242.6 million gallons less than the third quarter last year—a decline of 6.1%.

Net taxable gasoline gallons (including aviation gasoline) in the third quarter of the last nine years. Click to enlarge.

Comparing monthly gasoline consumption over the same month a year earlier, gasoline consumption declined by 4.3% in September 2008 from September last year. Californians consumed a total of 1.22 billion gallons of gasoline in September, 54.6 million gallons below the same month a year ago. The average California gasoline price at the pump in September was $3.84 per gallon, a 31.5% change from the average price the same month in 2007 when it was $2.92.

Diesel consumption in California declined 10.4% in the third quarter of 2008 from the third quarter last year. A total of 731.5 million gallons of diesel fuel was sold in the third quarter of 2008, which is 84.7 million gallons less than the third quarter last year.

Diesel fuel sold for use on California roads in September 2008 declined 8.8% over September 2007; the total used was 254.4 million gallons, which is 24.6 million gallons below the year before. The decreased diesel consumption reflects both the impacts of higher diesel prices of $4.09 in September 2008 and the slowing economy that is associated with less freight movement on California roads and highways. California diesel prices were up 35.4% in September 2008 compared to September 2007 when the average diesel price was $3.02.

The BOE is able to monitor gallons through tax receipts paid by fuel distributors. Figures for October 2008 are scheduled to be available near the end of January 2009.