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Why California Gas Prices Are the Highest in America

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Why California Gas Prices Are the Highest in America — A Chevron gas station is selling regular gasoline for over 7 dollars a gallon in Lee Vining, Calif., on July 5, 2022. Michael Vi/Shutterstock

Vance Ginn

5/30/2025Updated: 5/30/2025

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Commentary

California leads the nation in more ways than one—taxes, regulations, and, once again, gas prices. As of mid-May 2025, the average gasoline price in California is $4.85 per gallon, far above the national average of $3.26, according to GasBuddy and AAA.

Vance Ginn

Vance Ginn

Author

Vance Ginn, Ph.D., is founder and president of Ginn Economic Consulting, LLC and an associate research fellow with the American Institute for Economic Research (AIER). He is chief economist at Pelican Institute for Public Policy and senior fellow at Americans for Tax Reform. He previously served as the associate director for economic policy of the White House’s Office of Management and Budget, 2019–20.