Gas prices soar in California over the past week

Gas prices in California have soared over the past week according to AAA. The price of regular unleaded gas increased by 66 cents from $5.52 to $6.18 in just one week. In the past month, prices have jumped 90 cents.

Why are prices going up? According to the story on ABC 7, the reason is “planned and unplanned maintenance.” The article also has a statement from the Chevron Richmond refinery that mentioned the reasons gas prices in California are so much higher in the state.

Many factors figure into the price of a gallon of gasoline including some unique ones specific to California. In addition to the price of oil, other factors include the competitive conditions in the marketplace, the higher cost to produce gasoline to the specifications required by the California Air Resources Board, costs associated with fuel distribution, local, state and federal taxes, California carbon-compliance costs, recent inflationary pressures, and fixed costs of doing business that are often higher in California relative to other states (e.g., the cost of commercial real estate). The majority of our branded stations in California are owned by independent businesspeople who make their own decisions about the prices to charge at their stations.

ABC 7,

The difference in prices between California and the rest of the country has also increased dramatically in the past month from $1.42 to $2 per gallon.