Californians used 1.3 percent less gasoline in August than the prior month, but consumed 0.7 percent more than during the corresponding year earlier period, according to data released by the state’s Board of Equalization.

Data indicates drivers in the Golden State consumed 1.268 billion gallons of gasoline during August, a decrease of 17 million gallons from the prior month but up 8 millions gallons from August 2008 consumption figures.

According to the data, gasoline consumption has increased year-on-year for the past four months. So far in 2009, however, gasoline consumption had declined 1.6 percent compared to the January through August 2008 period.

The August pump price averaged $3.06 gal compared to a $4.13 gal average in August 2008, a 25.9 percent drop from a record high price.

Gasoline sold in August generated approximately $324 million in sales tax during the month, an estimated $59 million less than generated last year. August sales tax revenues from gasoline would have been about $37 million less had not the state portion of the sales and use tax rate increased from 5 percent to 6 percent on April 1.

August diesel fuel sold for use on roads in the state totaled 193.95 million gallons, nearly 22 million gallons below prior month consumption and 40.1 million gallons or 17.1 percent below August 2008 levels.

At $2.85 gal, diesel prices in the state were a significant 37.2 percent below August 2008’s average of $4.54 gal.

BOE reported diesel consumption generally follows economic activity during a recession.

“While the diesel gallons reflected in the August numbers are down 40.1 million gallons, indicating a decline of 17.1 percent, the reduction in consumption is likely to be less,” the agency said.

BOE anticipates the actual decline may be closer to 20.8 million gallons, a decrease of 8.9 percent, because the August figures include a 19.3 million gallon non-recurring credit.

“The gallons included in the monthly consumption numbers are always net of audit assessments and refunds. The August 2009 credit was larger than most and may have skewed the actual amount of decline,” said BOE.

The BOE, a publicly elected five member tax board, monitors gallons sold at the rack distribution level through tax receipts paid by fuel distributors. The BOE collects more than $53 billion annually in taxes and fees supporting state and local government services.