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California Gas Prices: When Fuel Costs Burn Hotter Than the National Average

Data sourced from AAA shows the average retail price for regular unleaded gasoline across all 50 states and the District of Columbia. Prices reflect current market conditions, including winter demand lows and crude oil at ~$57/bbl.

StateAverage Price ($/gal)
Alabama2.539
Alaska3.543
Arizona3.028
Arkansas2.401
California4.267
Colorado2.350
Connecticut2.923
Delaware2.841
District of Columbia3.166
Florida2.827
Georgia2.654
Hawaii4.412
Idaho2.806
Illinois2.902
Indiana2.788
Iowa2.335
Kansas2.424
Kentucky2.585
Louisiana2.461
Maine2.933
Maryland2.894
Massachusetts2.946
Michigan2.703
Minnesota2.628
Mississippi2.453
Missouri2.459
Montana2.781
Nebraska2.489
Nevada3.387
New Hampshire2.872
New Jersey2.821
New Mexico2.555
New York3.034
North Carolina2.617
North Dakota2.546
Ohio2.573
Oklahoma2.226
Oregon3.409
Pennsylvania3.015
Rhode Island2.870
South Carolina2.510
South Dakota2.554
Tennessee2.507
Texas2.406
Utah2.606
Vermont3.040
Virginia2.701
Washington3.842
West Virginia2.803
Wisconsin2.423
Wyoming2.499
High Taxes, Tight Supply, and Rising Costs — Why California Drivers Keep Paying More at the Pump
High Taxes, Tight Supply, and Rising Costs, Why California Drivers Keep Paying More at the Pump

Why California Continues to Struggle with High Gas Prices

California’s average of $4.267/gal is the second-highest in the nation (behind Hawaii at $4.412), driven by a combination of high state-imposed costs and structural issues in its fuel market. The state levies some of the highest gasoline taxes and fees in the US, totaling about $1.26 per gallon, including excise taxes, sales taxes, and environmental fees tied to cap-and-trade programs. These taxes are adjusted annually for inflation, with a recent 1.6 cents/gal increase in July 2025.

Adding to this, California’s strict environmental regulations require a unique reformulated gasoline blend (CARB gasoline) to reduce emissions, which is more expensive to produce and limits supply options refiners can’t easily import standard fuel from other states. The state’s Low Carbon Fuel Standard, set to tighten further in 2026, imposes additional costs on oil companies for carbon credits, potentially adding more to pump prices without immediate hikes but through long-term industry investments.

A major factor is the ongoing refinery crisis: Several key refineries are scheduled to close in 2026, including facilities in Benicia and Los Angeles, reducing in-state refining capacity by a significant margin. This could push prices up by $1.21/gal or more as supply tightens, with some projections warning of averages exceeding $5/gal, $8/gal, or even $12/gal in worst-case scenarios. Oil companies like Valero and others are exiting or scaling back operations due to these burdensome regulations, high operating costs, and anti-fossil fuel policies that discourage new investments or expansions. Limited in-state oil drilling hampered by permitting delays, bans on new fracking, and local ordinances further isolates California from cheaper domestic production, forcing reliance on imports and vulnerable supply chains.

While the push toward electric vehicles aims to reduce long-term dependence on gasoline, it hasn’t yet offset these immediate pressures, leaving drivers facing persistently elevated prices compared to the national average of ~$2.82/gal.

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