Energy

Gas Prices Rise to $4 in Parts of California

Douglas A. McIntyre

Published: February 7, 2016 8:42 am

Last Updated: January 13, 2020 1:31 pm

With the national average price for a gallon of regular at $1.83, the price in some parts of California is 120% above that. In some stations in the state, gasoline prices top $4.00.

Most of the gas stations with sky-high prices are in and around San Francisco and Los Angeles. The gas prices in Norwalk, Kirkwood, South San Francisco and Amboy are above $4. In San Bruno, Yermo and San Francisco proper, some stations charge $3.99.

In Los Angeles, prices are at $3.89. In North Hollywood, the price is $3.99.

It is not surprising that some parts of California have such high gas prices. The average gas price across the state is $2.51 according to GasBuddy. Only Hawaii is higher at $2.65. By contrast, the state with the lowest price average per gallon of regular is Oklahoma at $1.39.

That national average will go lower, perhaps much lower. Crude oil prices have dropped to $30. A year ago, the price was nearly $65 a barrel. A main reason for the drop in gasoline prices is the sea of available oil, due in part to a flood from Saudi Arabia, and perhaps to falling demand as the global economy slows. Despite the loud protests of other OPEC members, the kingdom says it will keep pumping.

Oil inventory is not the only factor. Proximity to refineries is also an issue. The average gas price in Louisiana is $1.63. In Oklahoma it is $1.54 and in Texas $1.62. All are near the huge refineries south of Houston and on the Gulf of Mexico, which itself is dotted by deepwater oil drilling platforms.

Gasoline taxes by state are another factor. The average nationwide is $0.48 per gallon, according to the American Petroleum Institute. In Oklahoma it is $0.35. California has the fifth highest gas tax in the United States at $0.59 a gallon, which is among the reason gas prices are so high across the state. Residents face gas prices at the high end of the national average, if only for that reason.