As Gas Prices Spike, California Is Hit Hardest
The New York Times • • general
Key Points:
- Gasoline prices in California have surged to nearly $5.82 per gallon, about $2 more than the national average of $3.98, largely due to the ongoing war in Iran.
- California's higher fuel costs stem from its unique low-pollution fuel blend, elevated taxes, and environmental fees, including a 60-cents-a-gallon excise tax, which is more than double the national average.
- The state's loss of nearly three dozen oil refineries since the early 1980s has increased reliance on imported fuel from distant sources like Asia, exacerbating supply challenges.
- Experts warn that California's stringent regulations and reduced refinery capacity have created a supply-side crisis, making the state particularly vulnerable to spikes in gasoline prices.
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