California Gas Prices Jump 40 Cents to $4.58, Now $1.66 Above National Average
By Ben SmithCalifornia gas prices are climbing again, and the latest reporting shows the spike is accelerating.
New reporting this week put the headline number plainly:
"California drivers are reeling as average gas prices surged 40 cents per gallon in just two weeks to $4.58, far outpacing the national average of $2.92, driven by shrinking refining capacity from the Valero Benicia refinery wind-down and prior Phillips 66 closure in Los Angeles."
The average California gas price is $4.58 per gallon, up from $4.46 last week and $4.18 two weeks ago. The national average, by contrast, sits at $2.92. That places California roughly $1.66 above the rest of the country.
Here is what makes this different from routine volatility. Nationally, gas prices have trended down over the past year. California is diverging sharply. This is not seasonal fluctuation. It is a structural supply squeeze.
Fresh reporting on the refinery closures driving the increase confirms the speed of the jump:
"The price of gas rose 40 cents in about two weeks, with the average price of gas across the state of California at $4.58 a gallon."
With Valero’s Benicia refinery winding down and Phillips 66’s Los Angeles facility already closed, the state is now down to just six operating refineries.
For the largest fuel-consuming state outside Texas, that reduction in in-state refining capacity materially tightens supply. And California’s regulatory structure compounds the pressure. The state requires a specific boutique gasoline blend and has limited interstate pipeline connections, making replacement supply more expensive and slower to secure. When a refinery goes offline, the impact shows up quickly at the pump.
Earlier RedState reporting adds context to what happens when in-state production falls:
"California imported more gasoline in November than ever before, with more than 40% coming from the Bahamas."
Those imports are not incidental. They are the downstream effects of constrained refining capacity. Fuel routed through distant maritime channels adds transport and compliance costs before it reaches California drivers.
Analysts have also warned that refinery closures alone could raise prices further:
"On average, the closures could raise the cost of gasoline for consumers by between 5 and 15 cents a gallon, said Patrick De Haan, GasBuddy’s head of petroleum analysis."
Put together, the picture is straightforward. California gas prices are at $4.58 per gallon. The national average is $2.92. Refinery closures have reduced the state to six operating facilities. Imports are rising to fill the gap. Experts warn additional increases are possible if supply remains tight or if unexpected maintenance disrupts output during peak demand months.
This is not a one-week anomaly. It is a supply system under measurable strain, with limited flexibility built into it. Unless refining capacity expands or demand softens meaningfully, volatility is likely to remain the norm. Based on the current data, there is no clear indication that California gas prices have stabilized, much less peaked.
 |
⭐⭐⭐⭐⭐