In FY 14-15, Californians consumed 14.921 billion gallons of gasoline, a 2.4% increase from 14.574 billion in FY 13-14. During FY 14-15 California’s average price of gasoline was $3.42 per gallon, a decline of 12.8% from the average price of gasoline of $3.92 in FY 13-14. During FY 14-15, diesel consumption rose 2.5%, following a 3.5% jump in FY 13-14.

Fiscal year gasoline consumption data is calculated from July 1, 2014 – June 30, 2015. The trend of rising gasoline consumption continued into the third quarter of 2015 (July – September), increasing 2.7% from the third quarter of 2014. Third quarter diesel consumption rose 1.3%.

In FY 14-15, BOE gasoline revenue estimates for sales and use taxes and excise taxes came in at $1.470 billion for sales and use tax and $5.371 billion for excise tax. In FY 14-15, BOE diesel revenue estimates for sales and use taxes and excise taxes were $830.2 million for sales tax and $357.7 million for excise tax.

After taking a significant recession-era hit, California’s economy has bounced back up to the seventh largest in the world as the state’s gross domestic product reached $2.3 trillion in 2014, according to the US Bureau of Economic Analysis (June 2015). Despite the ongoing drought, the agricultural sector grew in 2014 as well as economic growth in fields spanning information technology consulting to construction-related engineering, architecture, and manufacturing.

More Californians are finding employment and driving to work, according to BOE’s chief economist. In California, non-agricultural employment rose 3.0% in the third quarter of 2015 compared to the 2014 third quarter, according to the Employment Development Department.