California gas is ‘out of whack’ – nearly $2 more than national average. Who’s to blame?

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California gas is ‘out of whack’ – nearly $2 more than national average. Who’s to blame?
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California gas is ‘out of whack’ – nearly $2 more than national average

California has long been known as the country’s priciest place to fill up your tank, but these days the Golden State is “completely out of whack.”

While Russia’s invasion of Ukraine drove prices higher around the world, California’s perplexing price swing is largely due to the local oil industry, experts say, which is putting the state on another planet when it comes to gas. Average prices in the Bay Area are even higher, with San Francisco drivers closing in on $6 a gallon, and many commuters are desperately waiting for gas rebate checks from the state, which are set to. Although fuel costs are still down from their peak in June, drivers are contending with nearly seven months of average prices topping $5 a gallon.

Much of California’s high gasoline costs are explainable. The state’s 54-cent gasoline excise tax is among the highest in the country — only Pennsylvania’s is higher. There are also stricter environmental regulations and special fuel blends that prevent rampant smog from accumulating in cities. Altogether these factors tack on roughly $1.20 to California’s gas prices.

But it’s hard to get to the bottom of exactly why California’s oil refiners have reduced output now just as prices drop elsewhere. There has been no major refinery outage or catastrophe reported in recent months. Instead, experts glean information from oil production reports. “Because of antitrust regulations, we don’t know how individual refineries are operating,” said Kevin Slagle, vice president of the Western States Petroleum Association.

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