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West Coast and California Logistics Blog

California Trucking Industry Could Be Hit by Hidden Gas Tax Effective January 1st 2015

Thu, Sep 11, 2014 @ 11:00 AM / by Weber Logistics

Weber Logistics hosted a “Tank the Tax” press conference at our San Diego distribution center. Tank the Tax is a campaign that advocates against regulations that would raise the cost of fuel in the state. 

Earlier this year the California Air and Resource Board (CARB) proposed a tax on gas that could slow down the growth of the California trucking industry. This hidden gas tax is expected to take effect January 1st 2015. Prices are expected to rise between 15 cents and 76 cents per gallon.

Increased gas prices will affect consumers as well as businesses, mainly the California trucking industry. Gas prices in California are higher than any other state. A gas price increase will encourage trucks to gas up outside state lines and may drive logistics businesses to neighboring states.

Weber Logistics uses half a million gallons of gas a year.  A 75 cent increase per gallon will increase operations costs by $375,000 annually. Weber Logistics CEO, Harry Drajpuch, says this amount of money is equivalent to 10-12 jobs.

tank the tax 

Weber Logistics CEO Harry Drajpuch (left) stands with State Assemblyman Brian Jones (center) and Mike Williams from IWLA.

In the midst of rising costs, Weber Logistics stands by our high standards to deliver and perform efficiently and effectively. With our large network of asset and brokerage fleets we continue to push through these tough times to provide the best services to our partners.

Topics: West Coast Distribution, Logistics Management, Transportation Strategies

Written by Weber Logistics

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