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Oil prices are, by far, the greatest single influence on gas prices. Shipping problems near the Suez Canal have increased the oil price by $2 in the last few days. However, the price has been below $80 most of the last year, with a brief run to $90 in late September and October. The Israel military conflict with Hamas started on October 7.
California’s gas prices have been high for several reasons. One is the state’s gas taxes and levies. At $.8655, they are the highest in the country. The national average is $.5709. The lowest among all states is Alaska at $.3353.
Another is the number of refineries that produce gas to the state’s specifications. Patrick De Haan, head of petroleum analysis at GasBuddy, told CNN, “The problem is that California is kind of segregated from the rest of the nation in its requirements for gasoline. A declining amount of refineries can produce to that specification.”