California Premium

California's "price gap" between its gasoline and the rest of the country's is nearing $2 per gallon, the largest in 22 years: [bold added]

Much of California’s high gasoline costs are explainable. The state’s 54-cent gasoline excise tax is among the highest in the country — only Pennsylvania’s is higher. There are also stricter environmental regulations and special fuel blends that prevent rampant smog from accumulating in cities, altogether these factors tack on roughly $1.20 to California’s gas prices.

But the widening gap between what everyone from San Jose to Los Angeles is paying compared to the rest of the country is due to the concentrated nature of California’s oil refineries, experts say. Due to the state’s special gas blend, California is often termed a “fuel island” because nearly all gas sold in the state is refined locally by a handful of companies, including Chevron, Marathon Petroleum and PBF Energy. That means mechanical hiccups at refineries can cause major price spikes not seen elsewhere in the country.

California progressives have imposed a boutique gas formulation and higher gas taxes because they can do so without opposition. These factors have been known for years; for example, in 2019 we posted on this subject when the price gap was a mere $1.40 per gallon.

Undoubtedly the politicians will blame the oil refiners for greedy behavior that is mysteriously absent in the other 49 states. Having neither self-awareness or business experience, the politicians cannot imagine why capitalists don't invest a dime in an industry that they not only have trashed publicly but will regulate out of existence beginning in 2035.

Well, Californians have voted for these policies consistently since the turn of the century, and if they are looking for someone to blame they should just look in the mirror.