California drivers are experiencing significant variations in gasoline prices across the state, with county-level data revealing disparities of nearly 60 cents per gallon between the cheapest and most expensive markets. The state average for regular gasoline was $5.593 per gallon as of Sunday, according to AAA, considerably higher than the national average of $4.012.
Inland communities, particularly in the Central Valley, generally offer lower prices compared to coastal areas and parts of the Bay Area, where transportation, distribution, and regional costs contribute to higher prices. Yuba City recorded the lowest average price at $5.2718 per gallon, followed by El Centro at $5.3786, and Stockton-Lodi at $5.3984. Other areas with comparatively lower prices include Chico-Paradise ($5.3978), Modesto ($5.4038), and Redding ($5.4038).
Conversely, the San Luis Obispo-Atascadero-Paso Robles region faced the highest prices, with regular gasoline averaging $5.8601 per gallon. Premium gasoline was $6.26, and diesel exceeded $7.11 in this area. Other areas with elevated prices included San Francisco ($5.7187), Salinas ($5.7102), Napa ($5.7063), Santa Rosa ($5.7058), and San Diego ($5.6928). Los Angeles-Long Beach ($5.6629), Orange County ($5.6023), Riverside ($5.5458), and San Bernardino ($5.5704) also reported prices above the statewide average.
Even the most affordable areas in California remain significantly above the national average. For instance, Yuba City's average price of $5.2718 is more than $1.25 higher than the national average. Fresno's average of $5.5050 is nearly $1.50 higher than the national figure.
California's gasoline prices have seen a substantial increase over the past year. The current statewide average of $5.593 is approximately 24% higher than the $4.4961 recorded a year ago. While prices have slightly decreased from the previous week's $5.6551, they remain above the $5.3827 average from a month prior.
Several factors contribute to California's consistently high gas prices. Approximately 55% of the cost per gallon is attributed to state-specific factors, including refining and distribution expenses, a unique state-mandated fuel blend, taxes, and environmental programs. California's gasoline taxes and fees are among the highest in the nation, with motorists facing about 70.9 cents per gallon in state taxes and fees alone, according to the Department of Energy.
The state's refining capacity is also a concern. California had 23 operating refineries in 2000, a number projected to decrease to 11 by May 2026. The closure of major refining facilities raises concerns about the state's ability to manage supply disruptions. Crude oil, which accounts for roughly 40% of the pump price, is a primary cost driver. The state's reliance on imported crude oil, often arriving by sea, makes its fuel market particularly vulnerable to global supply chain disruptions and geopolitical events. For example, the conflict involving Iran caused crude oil and fuel markets to spike earlier in the year, pushing California prices briefly above $6 per gallon.