California Gas Prices: Everything You Need To Know
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If you’re reading this, there’s a good chance you’re concerned or outraged by the exorbitant California gas prices. California has had the highest gas prices in the United States for the longest time. However, with the current political and economic climate (i.e., Russia’s invasion of Ukraine), Californians are once again having to deal with skyrocketing gas prices.
How high are California gas prices?
For today’s post, we’re breaking down the gas prices in the state of California. Plus, we’ll answer some of the most common questions, like why it is so high and if it’s ever going down. Let’s dive right into it.
California Gas Prices: A Breakdown
The price for a gallon of gas in the U.S. continues to reach all-time highs, and as expected, California is leading the charge. As of this writing, the AAA listed the national average to be $4.33 per gallon and has long eclipsed the previous July 2008 all-time record of $4.11. When adjusted for inflation, that would amount to $.5.25 today.
For California, we’ve listed the current average for the state and compared it with gas prices from yesterday, last week, last month, and last year.
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California Gas Prices State Averages
Current Avg:
- Regular: $5.721
- Mid-grade: $5.900
- Premium: $6.034
- Diesel: $6.297
Yesterday Avg:
- Regular: $5.694
- Mid-grade: $5.834
- Premium: $5.976
- Diesel: $6.212
Last Week Avg:
- Regular: $5.074
- Mid-grade: $5.195
- Premium: $5.338
- Diesel: $5.335
Last Month Avg:
- Regular: $4.684
- Mid-grade: $4.881
- Premium: $5.006
- Diesel: $4.960
Last Year Avg:
- Regular: $3.783
- Mid-grade: $3.958
- Premium: $4.081
- Diesel: $3.952
The graph below illustrates how California gas prices have been trending since the previous year:
Note: We pulled all data from the AAA Gas Prices website, and it’s updated daily. Therefore, the figures listed above may not reflect real-time prices.
As you can see, there’s a relatively steep incline to California’s gas prices. However, with the current global political climate, everyone is experiencing high gas prices, not just California. It just so happens that the Golden State has the most expensive gas prices in America.
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Where’s the Cheapest Gas in California?
So, where can you get the lowest California gas prices? For this section, we referenced GasBuddy in finding the least expensive gas prices in California and which locations. Again, prices may not reflect real-world values due to fluctuating prices.
Here are the top ten best gas prices in California according to GasBuddy:
- Shell in Lompoc, CA: $4.84
- Hidden Oaks Convenience Store in Covelo, CA: $4.85
- Fastrip in Lemoore, CA: $4.97
- Fastrip in Wasco, CA: $4.99
- Coast Guard Exchange in Alameda, CA: $4.99
- Sam’s Club in Bakersfield, CA: $4.99
- Gas Mart in Davis, CA: $4.99
- Quick N Save in Riverbank, CA: $4.99
- One Stop in Modesto, CA: $4.99
- One Stop Gas in Sacramento, CA: $4.99
For the sake of comparison, we also researched the cheapest gas prices in some of California’s largest cities, including:
- Los Angeles: $4.99 - $5.29
- San Francisco: $4.99 - $5.25
- San Diego: $4.99 - $5.34
- San Jose: $4.96 - $5.29
- Fresno: $4.97 - $5.15
- Sacramento: $4.89 - $5.25
As of this time, it seems that Californians will have to look forward to $5 per gallon gas prices. As expected, it’s mostly the smaller cities with the least expensive gas prices in the Golden State, where you can get sub $5 gas prices. Larger cities tell a different story, especially when looking at the uppermost average.
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Why Do Californians Pay So Much at the Pump?
California’s higher gas prices are primarily due to the state’s taxes and regulatory programs to decrease greenhouse gas emissions and combat climate change in general. With all the elements combined, they add up to about $1.27 for every gallon of gas.
About 40%, give or take, of the added cost comes from California’s gasoline tax. According to the numbers provided by the Western States Petroleum Association, California taxes gas at 51.1 cents per gallon – the 2nd highest amount next to Pennsylvania. Here’s a simple breakdown of the taxes Californians are paying at the pump:
- 51.1 cents per gallon (State Excise Tax) - Again, California’s state excise tax on gasoline is among the highest in the country. In 2020, the tax started adjusting with inflation which is one of the many reasons for its steady increase over the years.
- 18.4 cents (Federal Excise Tax) - This is a federal-level gas tax paid all over the United States.
- 3.7% (Average State and Local Sales Tax) - These are sales taxes imposed by local governments that can range between 2.25% to 5.75%.
Plus, that’s not even including the environmental fees and the “phantom gasoline” surcharge that Californians pay for. According to the federal Energy Information Administration, California also receives special fuel formulas and highly relies on its local refineries.
The money goes to the thousands of infrastructure maintenance and improvements across the state, including additional highway lanes and retaining walls. Environmental projects also benefit from the taxes, such as zero-emission buses, high-speed rails, and other transportation infrastructures.
When Will California Gas Prices Come Down?
With plenty of political and economic uncertainties, not many people know when gas prices will go down if they ever come down. According to experts, you can expect gas prices to remain elevated for weeks, if not months. Also, the experts predict that the overall inflation will get worse in a month or two before it gets better. One of the most significant factors that will affect gas prices down the line is the Russia-Ukraine war.
However, according to USA Today, the price of U.S. crude oil per barrel has decreased by nearly $15. But then again, this doesn’t mean that fuel prices will finally come down; it may only mean a slowdown to the ongoing increase. Again, no one really knows.
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