A petroleum industry organization has issued a warning that California's combined taxes and fees on gasoline are nearing the point where regulatory costs could exceed the price of the fuel itself.

The claim comes as California maintains some of the highest gas prices in the nation, driven by a combination of state taxes, environmental regulations, and fees designed to fund various programs including climate initiatives and transportation infrastructure.

California currently imposes multiple layers of costs on gasoline, including state excise taxes, sales taxes, cap-and-trade program fees, and low carbon fuel standard costs. These charges are added to the wholesale price of gasoline before it reaches consumers at the pump.

The oil industry group's analysis suggests these accumulated regulatory costs are approaching parity with the underlying commodity price of gasoline. However, the methodology and specific calculations behind this claim were not detailed in the announcement.

California has implemented numerous environmental and climate policies in recent years aimed at reducing greenhouse gas emissions and transitioning to cleaner energy sources. These policies often include fees and regulations that can impact fuel costs.

State officials have previously defended California's approach as necessary to meet climate goals and fund essential infrastructure projects, while industry groups have consistently argued that such policies place an undue burden on consumers.