California’s gasoline price premium to the U.S. average has grown over time

California’s retail gasoline prices have historically exceeded the U.S. average, but its premium has grown over time. Gasoline is now $1.3/gal more in California than the national retail average, up from just a $0.30/gal premium in 2005-2014. California’s higher gasoline prices are driven by higher state taxes, environmental programs and fees, special fuel blending requirements, and its isolated market.