‘When tensions flare in the Middle East, Californians feel it first and worst’
While national crude prices set the floor, California’s taxes, climate rules, unique fuel special blend, and diminished refining system raise the price per gallon.
California gas is expensive for two overlapping reasons: it is structurally more costly than in most other states even in normal times, and the 2026 global oil shock has hit the state harder than the rest of the country.
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As of mid-September 2026, regular gasoline in California averages about $5.89 to $5.97 a gallon versus a U.S. average around $4.27 to $4.31.
Diesel costs are even more extreme, with statewide averages over $8.00 per gallon, even topping $9.00 per gallon in some counties.
Oil is priced globally, and while the U.S. is “energy independent,” it does not mean the U.S. sets its own gasoline price or that domestic crude automatically stays cheap at the pump.
Oil trades as a global commodity, so U.S. gasoline prices follow international crude benchmarks, even when the country produces more oil than anyone else and is a net exporter of petroleum products.
The U.S. is the world’s largest oil producer and a net exporter of petroleum products.
Global market, not a closed U.S. market
Crude oil trades as one interconnected commodity.
A barrel of similar quality from Texas, the North Sea, or the Middle East is valued against the same worldwide supply-demand balance and the same set of risks. Refiners then pay that price or lose supply to exports.
U.S. consumption of petroleum products is still far larger than domestic crude output – approximately 20 million barrels per day of products vs. roughly 13.5–13.8 million bpd of crude in 2026. The country remains a net importer of crude oil even while exporting refined products.
Forbes explains the two extra facts that sharpen the picture:
- U.S. production is mostly light, sweet crude. Many U.S. refineries were built for heavier, sour grades, so the country simultaneously exports light barrels and imports heavier ones. That two-way trade further locks domestic prices to the global market.
- Quality, location, and transport still create modest differentials (a few dollars a barrel, occasionally more). They do not break the overall linkage.
The result is a structural swap: the U.S. exports most of its light crude and imports heavy crude mostly from Canada, so refineries can run efficiently. Those imported barrels are bought at world prices. Retrofitting plants is expensive and slow.
What you actually pay at the pump
The U.S. Energy Information Administration standard four-part breakdown of U.S. retail regular gasoline prices treats crude oil as the largest component, and longer-run averages sit right in the 50–52% range.
The EIA explains:
Gasoline types
Gasoline is sold based on octane levels in three primary grades of gasoline:
- Regular
- Midgrade
- Premium
“The octane level indicates gasoline’s resistance to combustion. Gasoline with a higher octane is less prone to pre-ignition and detonation, also known as engine knocking. Refiners charge more for higher-octane fuel, and premium-grade gasoline is the most expensive. From 1995 through 2006, the price difference among grades of gasoline was typically about 10 cents per gallon. Since 2006, the price difference among gasoline grades has generally increased. In 2025, the national annual average price of midgrade gasoline was about 57 cents per gallon more than regular-grade gasoline, and the average price for premium-grade gasoline was about 93 cents per gallon more than regular-grade gasoline.”
Actually – it is WELL over $6 at almost all of the name brand stations where I am!!!! As for “special blend” – must be TOTAL BULL!!!! We get less mileage on their total blend – costs a hell of a blooooody lot more – and the only ones benefitting are the Pols!!!!
So – Californians – listen up – you are being raped, and not even a thank you, ma’am afterward!!! DO NOT VOTE for any new taxes – and most importantly – DO NOT VOTE for their newest scam of taxing us by the miles. THEY wanted the damned EVs, NOW they’re complaining we’re NOT paying enough gas taxes to support the road system that they’ve siphoned money off from and the roads are in disrepair!!!!
THIS IS A TOTAL POLITICIAN RAPE AND PILLAGE!!!!
The EV’s use the road that we use and they are not paying their fair share of maintenance. Mileage is fair for everyone. If you drive a lot you should pay more. Don’t like it, don’t drive.
The gas prices are higher than any other state because King Newsom says so. He is the one who inflates all of the prices because he hates President Trump. He is making Californias pay tax on their tips and overtime, but he can’t do it to the Federal. In a way these people deserve to pay more on their tips and overtime since they didn’t vote. Why should they benefit? King Newsom also increases electricity and energy bills, declares the state without any vote a sanctuary city and is defrauding all Federal monies from the train to nowhere since 2008, homeless funding and just about anything else needed to make this place decent to live. He is the best deterrent for running for President. His performance or rather lack of speaks volumes. Why just look to San Franciso to guide the way to his ruinous leadership. Yet these idiots will always vote their party even if they destroy all they touch.