Why are gas prices so high in California compared with other states
- Gas prices vary between states due to factors like local taxes, distance from supply, and environmental programs.
- In addition to state taxes, a federal tax of 18.4 cents per gallon has been applied to every gas purchase since 1993.
- California has the highest state gas tax at 71 cents-per-gallon.
With Golden State gas prices averaging more than $5 per gallon, drivers may be wondering what causes price variances at the pump from state to state. Why is gas so expensive in California?
The queries come as the national average gas price rose to $4.08 per gallon on Thursday, April 2, according to the AAA Auto Club. That figure is up from a national average price of $3.98 one week ago, on March 26, and an average of $3.00 on March 5.
The state with the highest gas prices on April 2 is California, where drivers paid an average of $5.89 per gallon, which was up from $4.65 one month ago on March 5. The state with the lowest gas prices on April 2 was Oklahoma, where drivers paid an average of $3.27 per gallon, which was still up from an average price of gas in Oklahoma of $2.47 per gallon one month ago on March 5.
Californians are feeling the pain of pump prices. Sacramento-based landscaper Doug Guster, 71, said he's lost over $800 in profit from his business due to rising fuel prices and customers canceling their services amid budgetary constraints since the start of the war with Iran.
"Over the last few weeks, I've lost like five or six customers because I have to raise my prices — all because of these gas prices," Guster said while filling up at a Foods Co. gas station in Sacramento. "I didn't want to. But otherwise it comes out of my pockets, my overhead cost."
The USA TODAY Cars Team looked at the causes of variation in state gas prices and which states have the highest gas taxes.
What causes variance in state gas prices?
Regional differences in gas prices can be explained by several factors, according to the U.S. Energy Information Administration.
The agency listed the following reasons for regional gas price differences:
- Differences in state and local gas taxes
- Distance from supply
- Supply disruptions
- Retail competition and operating costs
- Environmental programs
"Retail gasoline prices tend to be higher the further gasoline must be transported to the point of sale because transportation costs are higher," the agency said.
"Anything that slows or stops gasoline production can result in increased bidding for available gasoline supplies," the agency added. "Prices at gasoline stations are often highest in locations with fewer gasoline stations."
The agency added, "some areas of the country are required to use special, reformulated gasoline that includes additives to help reduce carbon monoxide, smog, and toxic air pollutants from evaporating and burning gasoline."
Which states have the highest gas taxes?
The federal government has been collecting taxes on every gas purchase made at a U.S. station since the 1930s. The current rate of 18.4 cents per gallon was established by a law that was passed by Congress in 1993. Transportation funding advocates have lamented the fact that Congress has not moved to increase the gas tax in over three decades.
On top of the federal gas tax that every driver pays, each state tacks on its own local gas tax.
Here are the states with the highest gas taxes and their current gas price averages:
1. California
- Gas Tax: 71 cents per gallon
- April 2 Gas Price Average: $5.89
2. Illinois
- Gas Tax: 66 cents per gallon
- April 2 Gas Price Average: $4.27
3. Washington
- Gas Tax: 59 cents per gallon
- April 2 Gas Price Average: $5.37
4. Pennsylvania
- Gas Tax: 59 cents per gallon
- April 2 Gas Price Average: $4.08
5. Indiana
- Gas Tax: 55 cents per gallon
- April 2 Gas Price Average: $3.95
6. Michigan
- Gas Tax: 48 cents per gallon
- April 2 Gas Price Average: $3.89
7. Maryland
- Gas Tax: 46 cents per gallon
- April 2 Gas Price Average: $4.06
8. New Jersey
- Gas Tax: 45 cents per gallon
- April 2 Gas Price Average: $4.05
9. Virginia
- Gas Tax: 42 cents per gallon
- April 2 Gas Price Average: $4.01
10. Rhode Island
- Gas Tax: 41 cents per gallon
- April 2 Gas Price Average: $3.91
11. North Carolina
- Gas Tax: 41 cents per gallon
- April 2 Gas Price Average: $3.91
12. Oregon
- Gas Tax: 40 cents per gallon
- April 2 Gas Price Average: $4.97
13. Florida
- Gas Tax: 39 cents per gallon
- April 2 Gas Price Average: $4.23
14. Utah
- Gas Tax: 39 cents per gallon
- April 2 Gas Price Average: $4.19
15. Ohio
- Gas Tax: 39 cents per gallon
- April 2 Gas Price Average: $3.76
16. West Virginia
- Gas Tax: 36 cents per gallon
- April 2 Gas Price Average: $3.91
17. Washington, D.C.
- Gas Tax: 35 cents per gallon
- April 2 Gas Price Average: $4.20
18. Georgia
- Gas Tax: 34 cents per gallon
- April 2 Gas Price Average: $3.70
19. Montana
- Gas Tax: 34 cents per gallon
- April 2 Gas Price Average: $3.75
20. Idaho
- Gas Tax: 33 cents per gallon
- April 2 Gas Price Average: $4.27
21. Wisconsin
- Gas Tax: 33 cents per gallon
- April 2 Gas Price Average: $3.79
22. Nebraska
- Gas Tax: 33 cents per gallon
- April 2 Gas Price Average: $3.43
23. Minnesota
- Gas Tax: 32 cents per gallon
- April 2 Gas Price Average: $3.55
24. Maine
- Gas Tax: 31 cents per gallon
- April 2 Gas Price Average: $3.91
25. Vermont
- Gas Tax: 31 cents per gallon
- April 2 Gas Price Average: $3.99
26. Alabama
- Gas Tax: 31 cents per gallon
- April 2 Gas Price Average: $3.80
27. Iowa
- Gas Tax: 30 cents per gallon
- April 2 Gas Price Average: $3.48
28. South Dakota
- Gas Tax: 30 cents per gallon
- April 2 Gas Price Average: $3.52
29. Missouri
- Gas Tax: 30 cents per gallon
- April 2 Gas Price Average: $3.49
30. Colorado
- Gas Tax: 29 cents per gallon
- April 2 Gas Price Average: $3.83
31. South Carolina
- Gas Tax: 59 cents per gallon
- April 2 Gas Price Average: $3.83
32. Massachusetts
- Gas Tax: 27 cents per gallon
- April 2 Gas Price Average: $3.86
33. Tennessee
- Gas Tax: 27 cents per gallon
- April 2 Gas Price Average: $3.84
34. Kentucky
- Gas Tax: 26 cents per gallon
- April 2 Gas Price Average: $3.90
35. Kansas
- Gas Tax: 25 cents per gallon
- April 2 Gas Price Average: $3.33
36. Arkansas
- Gas Tax: 25 cents per gallon
- April 2 Gas Price Average: $3.53
37. Connecticut
- Gas Tax: 25 cents per gallon
- April 2 Gas Price Average: $4.02
38. New York
- Gas Tax: 25 cents per gallon
- April 2 Gas Price Average: $4.01
39. Wyoming
- Gas Tax: 24 cents per gallon
- April 2 Gas Price Average: $3.84
40. New Hampshire
- Gas Tax: 24 cents per gallon
- April 2 Gas Price Average: $3.87
41. Nevada
- Gas Tax: 24 cents per gallon
- April 2 Gas Price Average: $4.94
42. North Dakota
- Gas Tax: 23 cents per gallon
- April 2 Gas Price Average: $3.43
43. Delaware
- Gas Tax: 23 cents per gallon
- April 2 Gas Price Average: $3.88
44. Mississippi
- Gas Tax: 21 cents per gallon
- April 2 Gas Price Average: $3.71
45. Louisiana
- Gas Tax: 21 cents per gallon
- April 2 Gas Price Average: $3.75
46. Oklahoma
- Gas Tax: 20 cents per gallon
- April 2 Gas Price Average: $3.27
47. Texas
- Gas Tax: 20 cents per gallon
- April 2 Gas Price Average: $3.80
48. Arizona
- Gas Tax: 18 cents per gallon
- April 2 Gas Price Average: $4.69
49. New Mexico
- Gas Tax: 19 cents cents-per-gallon
- April 2 Gas Price Average: $3.83
50. Hawaii
- Gas Tax: 19 cents per gallon
- April 2 Gas Price Average: $5.50
51. Alaska
- Gas Tax: 9 cents per gallon
- April 2 Gas Price Average: $4.60
Contributing: Noe Padilla, USA TODAY