Why do Californians Pay so much more for Gasoline?
If you’ve been following gas prices throughout the country, you may have noticed that drivers in California pay significantly higher prices at the pump than many of us living in the United States.
While most of us mid-westerners expect prices in California to be consistent with the cost of living there, what many people don’t realize is that the state of California actually operates its own reformulated program for gasoline that has even more restrictive requirements than those mandated for the rest of us by the Federal government.
Not only does the cleaner fuel cost more but the State and locals sales and use tax of 7.25 % is also added on top of Federal Tax and an 18 cent per gallon State excise tax. Because prices in the area are somewhat volatile, the cost of refining the gas for the region also fluctuates more widely than in other areas.
California drivers are also more susceptible to problems within the refineries themselves. Presently, they are running at full capacity to provide just enough gasoline to meet the demand. If any of these refineries experience any operational problems, gasoline for California drivers would quickly be in short supply. The less gasoline available, the higher the price.
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