Tom Kloza, of the Oil Price Information Service, said the reduced flow of gas is likely due to refiners bringing equipment offline for maintenance. That means mechanical hiccups at refineries can cause major price spikes not seen elsewhere in the country. 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. Altogether fees – including federal taxes which all states pay – tack on roughly $1.20 to the base price of California gasoline.īut 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. There are also stricter environmental regulations and special fuel blends that prevent rampant smog from accumulating in cities. The state’s 54-cent gasoline excise tax is among the highest in the country - only Pennsylvania’s is higher. Much of California’s high gasoline costs are explainable. “It’s not like you can change your career overnight,” said Khvann, a part-time real estate agent. She spends about $800 a month on fuel shuttling around her children. “It’s unfair,” said Sonya Khvann, a single mother of three, who was pumping gas in Alameda on Friday. Although fuel costs are still down from their peak in June, drivers are contending with nearly seven months of average prices topping $5 a gallon. It’s going to go up even more.”Īverage prices in the Bay Area are even higher, with San Francisco drivers closing in on $6 a gallon, and many commuters are desperately waiting for gas-rebate checks from the state, which are set to hit most bank accounts in October. “If this holds, we’re just starting to see the increase.
“The commodity price of gasoline in California has gotten completely out of whack,” said Severin Borenstein an energy economist at UC Berkeley. The premium gas at this station is $6.29 per gallon while the Chevron gas station across the street cost $6.59.
OAKLAND, CALIFORNIA – SEPTEMBER 23: Sonya Khvann, of Oakland, fills up her SUV at a 76 gas station in Alameda, Calif., on Friday, Sept.
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