Los Angeles’ regular gasoline price continued to rise to $4.694 per gallon this Friday, a nearly 7-cent increase from the previous week. Records show that in the past 30 days, regular gasoline in the area has seen increases on 29 days. While Californians are accustomed to high gas prices, the continuous surge in prices has led to complaints from residents.
If you search for the keywords “California gasoline prices” on X, you can see the emotional reactions of Californians towards gas prices, which are almost entirely opposite to residents of other states.
A resident from a Midwestern state in the U.S. posted, questioning why gas prices in their area are less than $2 per gallon when transportation costs are significantly higher than delivering to Texas and California. “How do you explain this?”
Energy Secretary Chris Wright was spotted refueling his car at a gas station in a small town on the Gulf Coast of Texas this Friday, with gas priced at only $2.599 per gallon. In his post, he mentioned: “The result shows that everyone loves a drop in gas prices.”
Meanwhile, a resident who has lived in California for over forty years expressed frustration, saying, “Young people can’t afford to buy homes, rent and utilities are out of control, and gas prices are ridiculously high. Last night, I chatted with neighbors and discovered that everything is getting more expensive. I really want to leave this place as soon as possible.”
As of this Friday, the average price of regular gasoline in California is $4.642 per gallon, which is $1.66 higher than the national average of $2.982 per gallon and over $2 more expensive than Texas’ $2.601.
The recent surge in California gas prices is attributed to seasonal factors. The American Automobile Association (AAA) analysis explains that California is the first state in the U.S. transitioning to summer gasoline, with refineries in the state currently undergoing the transition. This typically puts upward pressure on gas prices as refineries often need maintenance during this period, reducing production; and summer gasoline contains higher-priced additives to reduce volatility, increasing its production cost.
Additionally, the closure of two major refineries in California and the increase in outbound travelers with the start of spring break have created tight fuel supply and increased demand.
However, experts point out that the reason for higher gas prices in California is due to regulatory and tax policies.
Some areas in Arizona and Nevada purchase gasoline from California, leading to higher gas prices, but still significantly cheaper than in California. In Maricopa County, Arizona, gas imported from California is priced at $3.500 per gallon, while in Clark County, Nevada, it is $3.708 per gallon, which is $1.14 and $0.934 lower than in California, respectively.
Automotive news media Autoblog recently pointed out that the high gas prices in California primarily stem from structural factors: California imposes the highest state-level gasoline tax in the U.S. (around 60 cents) and mandates the use of special low-emission fuel formulations that incur higher refining costs.
According to the California Energy Commission’s estimate, California drivers must pay $0.91 in taxes per gallon of gasoline, including $0.61 state sales tax, $0.18 federal sales tax, $0.10 sales tax, and $0.02 underground storage tank fee. In addition, the price of each gallon of gas also includes $0.14 for the Low Carbon Fuel Standard (LCFS), and $0.24 for the Carbon Emissions Trading Program fee (for emission reduction).
The total of these taxes amounts to nearly $1.30. Although some areas in Arizona and Nevada also use California gas, their state fuel taxes are only around 19 cents and 24 cents, respectively. Moreover, both states do not have California’s additional fees for low carbon fuel or carbon trading emission programs.
Focusing on economic and livelihood issues, the non-profit media outlet “The Center Square” quoted AAA spokesperson John Treanor’s view last year: the higher gas prices in California are due to government regulations.
To alleviate residents’ concerns about gas prices, Republican State Assemblyman Jeff Gonzalez introduced Assembly Bill 1745, proposing to suspend gas tax collection for one year, which has been submitted to the State Transportation Committee for review.