Tribal Gas Stations Offer Steep Savings in California

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As gas prices in California continue to surge, some drivers are finding relief at tribal-owned gas stations that can bypass state fuel taxes. These 55 stations across the state are able to offer prices over $1 per gallon cheaper than the statewide average of $5.86 per gallon.

Why it matters

The ability of tribal-owned gas stations to bypass state fuel taxes provides a significant cost savings for drivers in California, where gas prices are the highest in the nation. This highlights the unique tax status of Native American reservations and the ways it can benefit local communities.

The details

Tribal-owned gas stations in California only have to pay the federal fuel tax, which is 18.4 cents per gallon for gasoline and 24.3 cents per gallon for diesel. They can then pass those savings on to customers, offering prices significantly lower than surrounding stations that have to pay state fuel taxes as well. Some tribal stations also use gas as a "loss leader" to drive traffic to their other businesses like casinos.

• As of Thursday, the average price of gas in California was $5.86 per gallon.
• Prices are up $1 on average nationwide since the U.S. war with Iran began at the end of February.

What’s next

As gas prices continue to rise, more drivers may seek out these tribal-owned gas stations to find relief at the pump. The ability of tribes to bypass state fuel taxes could become an increasingly important factor in the California gas market.