Policy Analysis — June 2026

California's Gasoline Crisis

Refinery closures, boutique fuel mandates, and geographic isolation created the most expensive fuel market in America.

CA Average
$5.85
June 2026
US Average
$4.31
June 2026
CA Premium
$1.54
Per gallon
TX Average
$3.75
June 2026

What You're Really Paying For

Per-gallon cost breakdown: California vs. Texas

  • California
  • Texas
$0.00$0.45$0.90$1.35$1.80Crude OilRefining MarginState TaxFederal TaxCap & TradeLCFSCARBOBPremiumMysterySurchargeDistributionStation MarginSales Tax
Key insight: Even with identical crude oil costs and federal tax, California adds ~$2.90/gallon in state-specific costs. The "Mystery Surcharge" alone has cost Californians $59 billion since 2015.

Pump Prices Across States

Average regular gasoline, March 2026

CaliforniaOregonWashingtonUS AverageNevadaTexasMississippi$0$2$4$6$7$5.85$4.15$4.05$4.31$3.85$3.75$2.95
Sources: EIA, CAISO, CA Energy Commission, CPUC, CA Legislative Analyst, NRC, AAA, GasBuddy, Tax Foundation, MIT/Stanford, Kpler, Bloomberg, Reuters, CalMatters, UC Davis. March 2026.
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