Republish
Why are our gas costs so high?
We love that you want to share our stories with your readers. Hundreds of publications republish our work on a regular basis.
All of the articles at CalMatters are available to republish for free, under the following conditions:
-
- Give prominent credit to our journalists: Credit our authors at the top of the article and any other byline areas of your publication. In the byline, we prefer “By Author Name, CalMatters.” If you’re republishing guest commentary (example) from CalMatters, in the byline, use “By Author Name, Special for CalMatters.”
-
- Credit CalMatters at the top of the story: At the top of the story’s text, include this copy: “This story was originally published by CalMatters. Sign up for their newsletters.” If you are republishing commentary, include this copy instead: “This commentary was originally published by CalMatters. Sign up for their newsletters.” If you’re republishing in print, omit the second sentence on newsletter signups.
-
- Do not edit the article, including the headline, except to reflect relative changes in time, location and editorial style. For example, “yesterday” can be changed to “last week,” and “Alameda County” to “Alameda County, California” or “here.”
-
- If you add reporting that would help localize the article, include this copy in your story: “Additional reporting by [Your Publication]” and let us know at republish@calmatters.org.
-
- If you wish to translate the article, please contact us for approval at republish@calmatters.org.
-
- Photos and illustrations by CalMatters staff or shown as “for CalMatters” may only be republished alongside the stories in which they originally appeared. For any other uses, please contact us for approval at visuals@calmatters.org.
-
- Photos and illustrations from wire services like the Associated Press, Reuters, iStock are not free to republish.
-
- Do not sell our stories, and do not sell ads specifically against our stories. Feel free, however, to publish it on a page surrounded by ads you’ve already sold.
-
- Sharing a CalMatters story on social media? Please mention @CalMatters. We’re on X, Facebook, Instagram, TikTok and BlueSky.
If you’d like to regularly republish our stories, we have some other options available. Contact us at republish@calmatters.org if you’re interested.
Have other questions or special requests? Or do you have a great story to share about the impact of one of our stories on your audience? We’d love to hear from you. Contact us at republish@calmatters.org.

Why are our gas costs so high?
Share this:
It’s déjà vu all over again, to quote the inimitable Yogi Berra and pay homage to the baseball World Series that began this week.
For the umpteenth time, California politicians are complaining about the high prices that the state’s motorists pay for gasoline and suggesting that it’s because of nefarious behavior by big bad oil companies.
Gov. Gavin Newsom is the latest complainer, asking Attorney General Xavier Becerra, to “open an investigation into whether false advertising or price fixing are occurring and contributing to the mystery surcharge imposed on Californians.”
Newsom cited a report on fuel prices that he had requested from the California Energy Commission (CEC) last spring, saying it “suggests big oil companies are misleading and overcharging customers, leading to Californians paying as much as 30 cents per gallon more than residents of other states.”
Actually, the price differential was more than 70 cents in 2018, the Energy Commission report said. It attributes half of it to California’s gas taxes, which are among the nation’s highest, and another chunk to higher costs of crude oil.
That left a 23-cent gap “from refiner and retail margins,” which is the “mystery surcharge” to which Newsom referred.
“CEC staff concluded that the primary cause of the residual price increase is simply that California’s retail gasoline outlets are charging higher prices than those in other states” the report said, adding, “The CEC does not have any evidence that gasoline retailers fixed prices or engaged in false advertising. Moreover, the CEC lacks the expertise to determine whether such behavior occurred.”
The report suggested that “The California Department of Justice is well equipped to conduct an appropriate investigation,” and Newsom immediately handed it off to Becerra.
It’s not disputed that Californians are paying substantially more for gasoline than motorists in most other states — $1 or more per gallon compared to the least-expensive states. It’s also not disputed that most of the differential stems from political policy, including taxes and a mandate that fuel sold in California meet strict air quality standards not imposed elsewhere.
It’s a little odd that Newsom should be complaining about that since he’s ordered his transportation department to do whatever it can to reduce automotive travel to battle climate change and high fuel prices should discourage driving.
It’s also a little odd that the CEC’s report did not delve into a factor that could, at least in part, solve what Newsom calls the “mystery surcharge.” That’s the obvious fact that doing any kind of business in California is more expensive than in most other states.
Payroll costs, including wages, benefits and workers’ compensation insurance premiums, are among the nation’s highest. So are land, construction costs, commercial rents and, finally, taxes on business.
By sheer coincidence, as Newsom was calling for an investigation of gas prices, the Washington-based Tax Foundation was releasing its annual report on business tax climate and scored California as having the 48th highest burden, surpassed only by New York and New Jersey. The state’s ranking was strongly influenced by its ultra-high personal income and sales taxes.
If Becerra can find some collusion among oil companies so be it. But one hopes it will be an objective inquiry without the preconceived conclusion that Newsom’s letter suggests, and that it will include factors such as California’s high cost of doing business.
We deserve to know what causes our fuel costs to be so high. We don’t need a witch hunt.
Dan WaltersOpinion Columnist
Dan Walters is one of most decorated and widely syndicated columnists in California history, authoring a column four times a week that offers his view and analysis of the state’s political, economic,... More by Dan Walters