Posted on 5/30/2025
Anyone who’s filled up at a California gas station knows it comes at a premium. Fuel prices in California consistently rank among the highest in the United States, often leaving drivers wondering why a gallon of gas costs significantly more than in other states. The price difference isn’t just about geography. A combination of taxes, environmental regulations, and supply logistics all contribute to the higher cost at the pump. Here’s a look at the key reasons why fuel is more expensive in California—and why it’s unlikely to change anytime soon. Higher Fuel Taxes One of the biggest contributors to California’s high fuel prices is the state’s tax structure. California imposes some of the highest gasoline taxes in the country. As of now, the combined state and federal taxes on gasoline can exceed 70 cents per gallon. These taxes include: State excise tax Sales tax Underground storage tank fee Local taxes in some regions The ... read more