California Gas Prices and Why They Are What They Are

Prices as of July 21, 2026, per AAA · Updated July 21, 2026

As of July 21, 2026, regular gasoline in California averages $5.52/gallon (the 1st-highest in the U.S.), per AAA — 1.52 above the national average of $4.00. Diesel averages $6.73. State fuel taxes and fees add 70.9¢/gallon on top of the 18.4¢ federal excise.

Regular
$5.52
#1 of 51 (1 = highest)
Diesel
$6.73
July 21, 2026
State fuel taxes
70.9¢/gal
Tax Foundation, 2026
U.S. average
$4.00
EIA, week of July 20, 2026

Where the $5.52 goes

Component$/gallonShareSource
Crude oil (national cost, WTI June 2026) 2.02 37% EIA
Federal + California fuel taxes (18.4¢ + 70.9¢) 0.89 16% Tax Foundation
Refining, distribution, margins & embedded program costs (residual) 2.61 47% computed

Crude oil costs every state's refiners roughly the same, so California's position comes from the tax line and the residual: refining capacity and logistics, fuel-specification requirements, and any carbon or clean-fuel program costs embedded in the pump price.

State policies that show up at the pump

PolicyDetail
Cap-and-trade on motor fuelYes
Low Carbon Fuel StandardYes
State-only fuel blendYes
Federal RFG areasYes
Refinery count14 (down 3 since 2020)
Pipeline access to other PADDsNo
Inventory mandate (SBX1-2)Yes

State government control

Control todayUnified Democratic (Governor + Assembly + Senate, all D)
Years of unified Democratic control, 2001–202518
Years of unified Republican control0
Years of divided government7

Fuel-tax levels and fuel-specification programs are set by legislatures and governors; the national comparison shows average prices and taxes grouped by state control.

Compare: all states ranked · California electricity rates · gasoline prices by country

Sources: AAA (pump prices, updated daily; the industry-standard 50-state series), Tax Foundation (2026 state fuel taxes), EIA (WTI crude). The residual is computed, not reported. See methodology.