Get your shocked face ready…. Outside of Hawaii and Alaska, with their transportation and distribution issues, California’s fuel prices rank as the 3rd highest in the nation. Our whopping $0.498/gallon in fuel taxes does not help, nor will the estimated $0.14/gallon increase in 2015 as a result of the state’s Cap and Trade program. As part of the program, California’s refineries will be required to pay a tax based on their emissions. This tax will, of course, be passed along to the consumer.
California cannot source fuel from other states as it requires a unique blend of fuel. Refineries in other parts of the country do not find it cost effective to produce and ship into California when it is the only market requiring this boutique blend of fuel.