by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
‘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.
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.
