California Gas Prices and Why They Are What They Are
Prices as of September 04, 2026, per AAA · Updated September 04, 2026
As of September 04, 2026, regular gasoline in California averages $5.81/gallon (the 1st-highest in the U.S.), per AAA — 1.74 above the national average of $4.07. Diesel averages $7.71. State fuel taxes and fees add 73.6¢/gallon on top of the 18.4¢ federal excise.
Where the $5.81 goes
| Component | $/gallon | Share | Source |
|---|---|---|---|
| Crude oil (national cost, WTI August 2026) | 2.00 | 34% | EIA |
| Federal + California fuel taxes (18.4¢ + 73.6¢) | 0.92 | 16% | Tax Foundation |
| Refining, distribution, margins & embedded program costs (residual) | 2.89 | 50% | computed |
Crude oil costs every state's refiners roughly the same, so California's position comes from the tax line and the residual: refining capacity and logistics, fuel-specification requirements, and any carbon or clean-fuel program costs embedded in the pump price.
State policies that show up at the pump
| Policy | Detail |
|---|---|
| Cap-and-trade on motor fuel | Yes |
| Low Carbon Fuel Standard | Yes |
| State-only fuel blend | Yes |
| Federal RFG areas | Yes |
| Refinery count | 14 (down 3 since 2020) |
| Pipeline access to other PADDs | No |
| Inventory mandate (SBX1-2) | Yes |
State government control
| Control today | Unified Democratic (Governor + Assembly + Senate, all D) |
| Years of unified Democratic control, 2001–2025 | 18 |
| Years of unified Republican control | 0 |
| Years of divided government | 7 |
Fuel-tax levels and fuel-specification programs are set by legislatures and governors; the national comparison shows average prices and taxes grouped by state control.
Compare: all states ranked · California electricity rates · gasoline prices by country
Sources: AAA (pump prices, updated daily; the industry-standard 50-state series), Tax Foundation (2026 state fuel taxes), EIA (WTI crude). The residual is computed, not reported. See methodology.