July 2008 diesel fuel sold for use on California roads totaled 243 million gallons, a decline of 7.9%, or 20.8 million gallons below that of July 2007. The decreased consumption reflects both the impacts of higher diesel prices of $4.97 in July 2008 and the slowing economy that is associated with less freight movement on California roads and highways.

The average California gas price at the pump in July 2008 was $4.51 per gallon, a 42.3 percent increase from the average price of July last year when it was $3.17. The BOE estimates that nearly twice as much sales tax is generated annually by higher gasoline prices than five years ago. Those higher prices generated approximately $3.6 billion in sales tax during 2007 when the average price was $3.12. In contrast, 2003’s gasoline sales generated $2.1 billion when the average pump price was $1.88.

California diesel prices were up 59.3% in July 2008 compared to July of 2007 when the average diesel price was $3.12.

According to the US Energy Information Administration (EIA), the average price of gasoline in California (all blends) in October has dropped to $3.38. The price of diesel is down to an average $3.568 for the month.