Yes, as AAA notes, some of the answer is explained by supply and demand. GasBuddy ranks California highest in the nation in gas prices, and among the country’s highest gas taxes are a major factor in why we pay so much at the pump – but there are other government policies that combine with these high taxes to make the situation … We begin with taxes. Which is why it’s so surprising that California Gov. In contrast, the national gas price average was $2.65 per gallon, which represents a spike of 9 cents per gallon over the previous month, but is 26 cents per gallon cheaper than the national average price in October 2018, according to AAA. The cleaner-burning gas is more expensive to produce, so California sees an increase in prices of about 10 to 15 cents per gallon. Maore than 70 mayors of some of the worlds largest and most influential cities representing some 700 million people meet in Copenhagen from October 9-12 for the C40 World Mayors Summit. So, this is a long-term reality for Californians, not some short-term event. Even in Hawaii, normally the most expensive, prices were about 20 cents a gallon cheaper. Fuel Insights ranked California as having the most expensive average price per gallon of gas at around $4.18 as of Oct. 6. Global demand in 2008 was actually down and global supply was up. An October 8 CNN story about gasoline prices carried this headline: “California gas prices soar above $4, reaching the highest price in five years.” One can only wonder if most Californians understand that that is all part of their state government’s plan. A 2018 study sanctioned by the Sacramento Bee found that, since 2001, “about 410,000 more people (about the population of Oakland) have left California for the Lone Star State than arrived from there.”. On top of the more expensive fuel come California’s gasoline taxes — the highest in the country. State government regulations on oil production in California have added even more to the price of gasoline paid by Golden State drivers. (Photo by Ole Jensen/Getty Images). Higher gasoline prices are just one part of the California government’s plan to make automobile travel much more expensive as time goes on. Gavin Newsom is demanding that the California Energy Commission investigate why gas is so expensive and report back to his office by May 15. And these costs will increase. From the United Nations participate Secretary General Antonio Guterres who also meets the Danish Prime Minister and the Queen of Denmark during the Summit. For the week of October 4, the average California price for a gallon of regular reached $4.18. No conspiracies required. So let’s unpack this idea that government is mostly to blame, along with my view that regulations tend to produce excess profits for the good folks who refine crude oil and distribute gasoline. Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation. He is currently Associate Editor for Shale Magazine (www.shalemag.com), a contributor on energy-related matters at Forbes.com, and a feature writer for World Oil Magazine. 2016 Center for Medical Economics and Innovation, Terms and Conditions of Attendance at PRI Events. Prices at the gas pump are rising as maintenance work at refineries is squeezing supply. Gasoline sold in California costs more than in the rest of the U.S. — sometimes dramatically so. From the United Nations participate Secretary General Antonio Guterres who also meets the Danish Prime Minister and the Queen of Denmark during the Summit. All Rights Reserved, This is a BETA experience. Evil Oil Speculators. But that’s not all. The price increased by 5.6 cents per gallon on July 1 thanks to another gas tax increase courtesy Senate Bill 1, the $52 billion gas tax increase enacted by the Legislature in 2017. Oil consumption decreased from 88.42 million barrels per day in the fourth quarter of 2007 to 87.94 million bpd in the first quarter of 2008. The state has also adopted policies, like requiring cars sold in their state to have higher mileage requirements per gallon than the national requirements, that already make buying a car in California more costly than doing so in other states, and will only increase that disparity into the future. COPENHAGEN, DENMARK OCTOBER 10: Michael Bloomberg (L), Mayor of New York City and President of the ... [+] C40 Board together with Anne Hidalgo, Mayor of Paris and outgoing Chair of C40 Cities and Eric Garcetti, Mayor of Los Angeles and new chair of the C40 Cities during the C40 World Mayors Summit hand over of the chair on October 10, 2019 in Copenhagen, Denmark. 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