The Bay Why California Has the Nation’s Most Expensive Gas
Mar 25, 2026
Alejandro Lasso, a CalMatters climate reporter who covers energy and oil markets, breaks down why Californians pay so much at the pump. He links the recent spike to global supply shocks and explains structural drivers like taxes, unique fuel blends, refinery closures, and market isolation. They also discuss profit caps, short-term relief options, and the tension between affordability and climate policy.
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Reporter Winced Filling His Old Toyota Echo
- Alejandro Lasso drove his 2000 Toyota Echo to the studio and noted he only recently filled up and "winced" at the price.
- He used his wife's daily South San Francisco commute as a concrete example of household pinch.
California-Priced Gas Is A Structural Problem
- California gas averages about $5.82 per gallon versus $3.98 nationwide, creating roughly a $2 gap.
- Alejandro Lasso attributes the gap to high state-specific costs like taxes, climate rules, a special gasoline blend, and market isolation.
Global Conflict Is Pushing Prices Up
- National price spikes are driven by the U.S. and Israel conflict with Iran and disruptions around the Strait of Hormuz.
- Alejandro Lasso notes roughly one-fifth of global oil supplies can be cut off when that choke point is threatened.