California Energy Price Data for February 2025

For the 12 months ending December, the California CPI rose 3.0%, rising from 2.6% for the year ending November. In the same period, the US CPI went to 2.9% in December from 2.7% in November. Using the same Department of Finance weighting formula, Food at Home (groceries) rose 1.1% in California compared to 1.8% for the US. Food Away from Home (restaurants and takeout) rose 5.3% compared to the US at 3.6%.

The February average price per gallon of regular gasoline in California rose 33 cents from January to $4.77.  The California regulatory and tax premium above the average for the US other than California ($3.01) rose to $1.76, a 58.6% difference.

The price rise in February once again demonstrates that California’s high fuel prices stem from its regulatory isolation from any potential relief supplies.  An accident at the Martinez refinery combined with routinely scheduled biannual maintenance and the current shift to higher-cost summer formulations led to February’s increase.  There are no product pipelines connecting California to the broader US market.  Shipments from US supplies are limited by the number of Jones Act eligible tankers, and shipments from the few available import sources limited by distance and increasing air quality limits on tanker docking.  Governor Newsom previously has indirectly acknowledged the dominant role played by California’s unique formulation regulations by twice ordering the Air Board to provide the regulatory relief that brought down consumer costs in two previous spike episodes.  Instead of finally providing a real solution to the regulatory restrictions that have plagued California prices since they were first adopted in the 1990s, last year’s ABX2-1 attempts yet another partial workaround that will raise gasoline prices even further rather tackling the causes head on.

In the latest March 5 data from CSAA, regular averaged $4.760 a gallon in California compared to $3.107 for the US.

In February, California had the highest gasoline price among the contiguous states and DC. Californians paid $2.10 a gallon more than consumers in Mississippi, the state with the lowest price.

In February, California Energy Commission data indicates that $1.42 (31.9%) of the price of a gallon of regular gasoline was paid to cover state, local, and federal taxes and fees.

The February average price per gallon of diesel in California rose 11 cents from January to $5.07. The California regulatory and tax premium above the average for the US other than California ($3.57) rose to $1.50, a 42.1% difference.

In February, California had the highest diesel price among the contiguous states and DC.

The cost premium above the US (other than California) average price for regular gasoline ranged from $1.24 in the Inland Empire Region (average February price of $4.61), to $1.63 in Central Coast Region (average February price of $5.00).

California average Residential Price for the 12 months ended December 2024 was 31.81 cents/kWh, 104.4% higher than the US average of 15.56 cents/kWh for all states other than California. California’s residential prices were the highest among the contiguous states and DC.

For the 12 months ended December 2024, the average annual Residential electricity bill in California was $1,937, or 94.9% higher ($943) than the comparable bill in 2010 (the year the AB 32 implementation began with the Early Action items). In this same period, the average US (less CA) electricity bill for all the other states grew only 24.5% ($335).

In 2010, California had the 9th lowest residential electricity bill among the contiguous states and DC. In the latest data, it had the 7th highest.

Residential bills, however, vary widely by region. Transforming the 2022 data recently released by the Energy Commission, estimated annual household usage is as much as 82% higher in the interior regions compared to the milder climate coastal areas, and substantially higher when comparing across counties.

For the 12 months ended December 2024, California’s higher electricity prices translated into Residential ratepayers paying $14.0 billion more than the average ratepayers elsewhere in the US using the same amount of energy. Compared to the lowest cost state, California households paid $17.6 billion more.

California average Commercial Price for the 12 months ended December 2024 was 25.28 cents/kWh, 113.0% higher than the US average of 11.87 cents/kWh for all states other than California. California’s commercial prices were the highest among the contiguous states and DC.

California average Industrial Price for the 12 months ended December 2024 was 21.73 cents/kWh, 186.7% higher than the US average of 7.58 cents/kWh for all states other than California. California’s industrial prices were the highest among the contiguous states and DC.

For the 12 months ended December 2024, California’s higher electricity prices translated into Commercial & Industrial ratepayers paying $21.5 billion more than ratepayers elsewhere in the US using the same amount of energy. Compared to the lowest rate states, Commercial & Industrial ratepayers paid $27.7 billion more.