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Why California faces high gas prices [Video]

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USA Energy Price News

California is home to some of the highest gas prices in the United States, according to AAA.

The national average for a gallon of regular unleaded was $3.40 as of Thursday, according to the organization’s data. In California, the average was $4.87, more than any other state.

Several factors go into what drivers pay for gas, including refining costs, taxes, distribution and marketing, and crude oil prices, according to the U.S. Energy Information Administration.

High taxes are partly to blame in California. The state has the highest gasoline taxes in the nation, according to EIA.

But there’s more to the story.

An isolated market and a special fuel blend

California requires a special blend of gasoline that reduces pollution — and costs more money. 

“California also has seen a drop of 66% in the amount of refineries in operation from where we were 40 years ago,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “So there are fewer …

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