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Why gas prices swing higher in California than in other states

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SAN DIEGO (KGTV) — Gas prices in California have already climbed 50 cents at the pump, according to Triple A, and experts warn it could get worse.

Alleyn Venegas, a spokesperson for Triple A, said the ongoing conflict in the Middle East could push prices even higher.

"We don't really know how high gas prices are going to go up to, you know, or how long it's going to take for gas prices to stop increasing," Venegas said. "The only thing we can do is just compare the situation to, you know, back in March of 2022 when that conflict with Ukraine and Russia began. That year, we did see record prices. Here in California, we paid $6.44 in July, which means, you know, the conflict continues during the summer, we can definitely pay similar to that."

So why does California consistently pay more for gas than the rest of the country?

The Energy Information Administration has more information.

Taxes in California are among the highest in the nation, with the EIA saying they cost taxpayers up to $0.90 per gallon.

The state also operates what is known as an isolated gmarket, relying on refineries within its own borders to refine crude oil into fuel.

When one of those refineries shuts down, it directly impacts prices at the pump. One refinery — the Valero in Benicia — is expected to shut down at the end of next month.

The EIA also estimates Californians pay an extra $0.50 per gallon for more environmentally friendly gasoline, which meets state guidelines — a cleaner-burning fuel that is more expensive to produce.

There is one more factor driving up costs. California imports crude oil at increasingly high rates, which can lead to more volatility when global wars arise.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.