Rising tensions tied to the war in Iran and its impact on global oil shipping routes are contributing to higher gas prices across the United States, with California drivers facing some of the steepest costs in the country.
The national average price for gasoline has now surpassed $4 per gallon, while California’s statewide average is hovering just below $6.
In several locations across the state, prices have climbed even higher, widening the gap between California and the rest of the nation.
As consumers question why California continues to pay significantly more at the pump, analysts point to a combination of long-standing state policies and factors that remain less clearly understood.
Dr. Severin Borenstein, faculty director of the Energy Institute at Haas at the University of California, Berkeley, said California’s higher fuel taxes, environmental fees, and unique gasoline blend account for roughly half of the price difference compared to the national average.
However, he said those factors alone do not fully explain the current price gap.
“The difference is what I call the mystery gasoline surcharge,” Borenstein said.
According to Borenstein, prior to 2015, California gas prices generally tracked closer to the national average, with an additional 90 cents to $1 per gallon attributed to the state’s taxes and environmental requirements.
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