An analysis of U.S. Energy Information Administration data reveals a sharp departure from historical trends. While California gas prices traditionally sit higher due to state-specific taxes and environmental fees—which account for an 87-cent premium—the current disparity exceeds typical market fluctuations. In 2024 and 2025 combined, the gap between California and national prices reached this $1.50 threshold for only six weeks total.
California Pushes to Curb Wartime Gas Price Spikes
California drivers have paid at least $1.50 per gallon more than the national average for 13 of the first 25 weeks of 2026, a surge that Consumer Watchdog attributes to refiners exploiting the ongoing conflict with Iran to inflate profit margins beyond standard operating costs.
Jamie Court, president of Consumer Watchdog, argues that refiners are using the war as a pretext for excessive pricing. State-compiled data under SB 1322 supports this claim, showing gross refining profit margins hit $1.24 per gallon in April. To address this, lawmakers are advancing SB 493, sponsored by Senator Josh Becker, which seeks to update California’s anti-price gouging statutes. Existing Penal Code Section 396 prohibits price hikes of more than 10% during declared emergencies without cost justification. SB 493 would explicitly add war, defined as sustained military operations against a foreign power, to the list of conditions triggering these protections. The bill is scheduled for a hearing before the Assembly Committee on Public Safety on June 30.
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