California drivers know the sting of filling up at the pump, where prices often hover $1.50 to $2 above the national average—$4.65 per gallon versus $3.15 nationally as of April 2025. While crude oil and refining costs play a role, the real culprit behind these sky-high prices is a web of state taxes, fees, and regulations that inflate costs far beyond what’s necessary. Add to that the elevated operational costs for gas stations in California’s pricey real estate and regulatory environment, and it’s clear why motorists are squeezed. Worse, the state’s aggressive climate policies, like cap-and-trade and low carbon fuel standards, promise global environmental gains but deliver negligible impact, raising questions about their prudence.

Let’s break down the numbers. According to the California Energy Commission, taxes and fees account for roughly $1.35 per gallon of gasoline in 2024. The state excise tax, the highest in the nation, stands at 59.6 cents per gallon, up from 27.8 cents in 2017, with annual increases tied to inflation. The federal excise tax adds 18.4 cents, unchanged since 1993. State and local sales taxes, averaging 2.25% but varying by region,… Read More