California gas facts

California is acting to protect our people from gas price spikes. We’re working toward a future of cleaner air and better roads for all. 

A person pumping gas into their vehicle.

Fact: Price spikes at the pump are profit spikes for the oil industry.

Californians paid $2.2 billion more for gas in 2023, while the oil industry saw record profits.

California refineries go offline for maintenance with no plan for backfilling supply. This increases prices and oil industry profits. A new state law by Governor Gavin Newsom is working to fix this.

Fact: Rapid changes in gas prices are due to oil industry profits and costs. 

State taxes and fees are flat. Oil industry profits and costs drive price spikes.

California’s state taxes and fees don’t change day-to-day. Oil industry profits and costs do. The oil industry drives fluctuations in gas prices, including price spikes. Californians paid a record $2.61 more per gallon than the national average in 2022. Yet state taxes and fees stayed the same.

Explore what drives gas price spikes

Fact: Every gallon of gas you buy helps build better roads and funds climate action.

We’ve invested $60.5 billion in roads and climate projects, funded by gasoline sales.

Cleaner fuels and charging polluters are essential parts of California’s climate plan. Proceeds from the state’s cap-and-trade program have raised $28 billion. We put this money into projects that fight climate change and cut air pollution.

Our climate policies will save Californians an estimated $200 billion in health costs by 2045.

California’s gas taxes also benefit residents by funding needed infrastructure.

Fact: California is working to combat gas price spikes.

A new proposal could save Californians over $2 billion during gas price spikes like those in fall 2023.

With new tools, the state is closely tracking gas prices. We look at several factors, including gas supply and refinery maintenance.

We also have a new watchdog agency, the Division of Petroleum Market Oversight. It focuses on market oversight and identifying market manipulation by refiners.

California has also proposed a first-in-the-nation rule for refineries. It would require them to maintain a minimum inventory of fuel. They would have to responsibly plan for interruptions due to maintenance. This would prevent price spikes from artificially low supply when demand is high. Californians could save hundreds of millions, if not billions, of dollars.