Refinery costs, gas station fees, and state taxes all contribute to the high price, but the single largest factor is the cost of crude oil, which varies around the country.
SAN DIEGO – The price of gasoline in California has consistently hovered more than $1.50 above the national average.
Crude oil is the stuff that comes out of the ground. Refineries buy crude to turn it into useable products like gasoline. So why do refineries pay so much more? It's partly because of where California gets its oil, said UC San Diego energy expert David Victor. Purchasing oil from Texas or the Gulf would require long trucking routes or trips through the Panama Canal. There are no pipelines connecting California to those oil-rich areas.
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