Californians pay much more for gas than other states. These added charges are why

Drivers on tight budgets might be wondering more than ever why gasoline costs so much in California.

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The state adds various taxes and other charges to each gallon sold. They brought the average to $5.55, compared to $4.02 nationally, in the Aug. 17 survey by GasBuddy.com.

Much of the extra money goes to road and transit upgrades. The rest funds various environmental efforts, mainly against climate change.

Republicans in this election season have urged that these charges be reduced or repealed. That is unlikely anytime soon, with the Democratic dominance of the Legislature and governor’s office.

Fuel prices also depend on global factors, notably the disruption of crude oil shipping after the United States attacked Iran. A year ago, the average was $3.13 nationally and $4.42 in the state.

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The prices are explained on the website of the California Energy Commission. It says all states pay the same base price to cover the costs of extracting, refining and retailing the oil. That was $4.32 per gallon nationally in the latest update, including an 18-cent federal tax that goes to transportation projects.

California tacks on:

• 61 cents per gallon from a fuel tax increase approved by voters. It has aided road projects such as Stanislaus County’s North County Corridor first phase, opening just south of Riverbank in 2028. The tax is the main source for extending the Altamont Corridor Express rail service, which faces delays.
• 25 cents for climate programs, including a major boost to high-speed rail’s first phase between Merced and Bakersfield.
• 20 cents to promote the use of low-carbon fuels
• 2 cents to guard against leaks from underground fuel tanks.

The rest of the add-ons are state and local sales taxes, which vary around California. Modesto has one of the higher rates at 8.875% It includes voter-approved levies of 1% for city services, 0.5% for countywide transportation, and an 0.875% for public libraries.

This story was originally published August 21, 2026 at 10:42 AM with the headline “Californians pay much more for gas than other states. These added charges are why.”

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