03/28/2024

Here’s Why Californians Pay Way More For Gasoline Than Everyone Else

California’s strict environmental rules mandate gasoline sold within the state be produced according to strict formulas designed to reduce pollution. Unfortunately for citizens, the exotic formula makes a gallon of gas more expensive and difficult to produce. Few refineries outside the state are equipped to produce it.

Worse yet, the gasoline formula changes multiple times a year, switching from a winter recipe to a summer blend designed to slow down evaporation. The summer blend is even more expensive and trickier to make, thereby elevating the risk of refinery mishaps. Refiners also use up inventories of either blend before the switch, increasing the risk of price volatility.

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