SACRAMENTO, Calif. — Temperatures across the state are rising and so are gas prices.
One gas station in Natomas was selling premium unleaded for $4.89 a gallon Thursday.
The average price for a gallon of gas in California is $4.04, according to GasBuddy. In Oregon, that same gallon is $3.38. So how can the discrepancy be explained?
The first explanation is taxes. On average, Oregonians pay 55 cents per gallon in taxes whereas Californians pay 75 cents.
The second explanation is the cost associated with refining and transporting the gas.
Dan McTeague, senior petroleum analyst for GasBuddy, said California is a league of its own. The state has some of the strictest environmental fuel standards in the country. It requires special blends that are more expensive to produce than those in any other state. Few refineries outside the state are even able to produce it.
Additionally, transportation costs are higher because California doesn't have interstate pipelines. Fuel must be shipped or trucked in.
On the other hand, Oregon has different fuel standards and it gets its gas through the Olympic Pipeline by way of Washington State.
This adds up to wholesale prices being around 40 cents more per gallon in California than they are in Oregon.
Governor Gavin Newsom has asked the California Energy Commission for an analysis of the state's gas prices by May 15th.
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