Gas in Los Angeles costs about $1.75 a gallon more than the national average, and three things explain most of the gap. California charges higher taxes and climate fees than other states. It also requires a special cleaner-burning blend that few refineries make, and two of those refineries have closed since late 2025. In 2026, a global oil shock pushed every price higher on top of that.
The numbers below come from federal and state agencies and are dated. For more local explainers, see our Los Angeles and California guides.
Los Angeles gas prices right now
The EIA weekly gasoline survey put regular gas in Los Angeles at $6.08 a gallon for the week of October 12, 2026. That is $1.63 more than a year earlier.
| Area | Regular gasoline, week of Oct 12, 2026 | Change from a year earlier |
|---|---|---|
| Los Angeles | $6.08 | +$1.63 |
| California | $6.10 | +$1.65 |
| West Coast | $5.64 | +$1.43 |
| United States | $4.33 | +$1.27 |
Diesel is worse. California diesel averaged $8.09 a gallon that week, up more than $3 from a year earlier. Because trucks carry almost everything to stores, those costs also show up in food and other prices.
The jump shows up in official inflation data, too. In the Los Angeles area, gasoline prices were 30.8% higher in September 2026 than a year before, according to the Bureau of Labor Statistics. That one item pushed the area’s energy index up 20.3%.
Why gas got so expensive in 2026
The latest spike started far from California. A conflict in the Middle East has cut oil flows through the Strait of Hormuz and the Bab al-Mandeb Strait, two major shipping routes. As a result, crude oil prices climbed worldwide.
The federal Energy Information Administration expects the Brent crude price to average about $105 a barrel in the last three months of 2026. That compares with an average of $69 in 2025, according to its October Short-Term Energy Outlook. Tight diesel supplies around the world add more pressure, since refiners buy extra crude to make diesel.
Crude is the biggest single cost in a gallon of gas, so every state felt it. Still, California started from a much higher base, which is why LA prices broke $6 while the national average stayed near $4.30.
Taxes and fees: about $1.55 a gallon
California’s gas taxes are among the highest in the country, and they are only part of the extra cost. Here is a rough breakdown for a gallon bought in the City of Los Angeles in October 2026.
| Charge | Approximate cost per gallon |
|---|---|
| State excise tax (from July 1, 2026) | 63.4 cents |
| Federal excise tax | 18.4 cents |
| Sales tax (2.25% plus 3% local district taxes) | About 30 cents at $6 gas |
| Cap-and-trade program cost | About 25 cents |
| Low Carbon Fuel Standard cost | About 17 cents |
| Underground storage tank fee | 2 cents |
| Total | About $1.55 |
The state excise tax rises every July 1 with inflation under a 2017 law. This year it went from 61.2 cents to 63.4 cents, according to the California Department of Tax and Fee Administration. By contrast, the federal tax has not changed since 1993.
Sales tax on gas works differently from sales tax on other goods. The base rate is 2.25%, then local district taxes are added. In the City of Los Angeles those district taxes add 3 percentage points, so gas carries about 5.25% in sales tax. Our guide to the Los Angeles sales tax explains how those district taxes stack up.
The two climate programs are not taxes collected at the pump. Instead, refiners and importers pay for them and pass the cost through. The cents-per-gallon estimates come from the California Energy Commission’s January 2026 price breakdown, and they move with credit prices.
California’s special gasoline and shrinking refineries
California requires its own blend of cleaner-burning gasoline, set by the state Air Resources Board. Most refineries elsewhere do not make it. On top of that, no pipelines bring gasoline from the big refining centers in Texas and the Gulf Coast. So when supply runs short, extra fuel has to arrive by tanker, often from Asia, which takes weeks.
That supply has been shrinking. Phillips 66 stopped making fuel at its Los Angeles refinery in the fourth quarter of 2025. Then Valero shut its Benicia refinery in the Bay Area in early 2026. Together, those two plants made up about 17% of the state’s crude oil refining capacity, based on figures in a May 2026 state report.
Fewer refineries means less slack. If one of the remaining plants has an outage, there is little spare capacity to cover it.
The season matters, too. Summer gasoline must evaporate less, which makes it costlier to produce. Normally Southern California must sell the summer blend through October 31. In 2026, however, the state suspended that rule on September 28 and allowed cheaper winter-blend gas right away.
Refinery and station margins
Taxes and the special blend do not explain the whole gap. A May 2026 joint report by the Energy Commission and the state tax agency looked at what refiners and stations keep per gallon. In the report, the term “margin” covers both costs and profit.
- California’s retail price gap with the national average grew from about 4% in 2004-2014 to 14% in 2023.
- The average refinery margin rose from 26 cents a gallon in 2013 to 59 cents in 2024.
- The average retail station margin rose from 28 cents to 67 cents over the same years.
- Labor, rent and other business costs are 26% to 39% higher in California than in many other states.
The agencies concluded that higher costs alone do not account for the rise in margins. The report also found a growing gap between branded and unbranded gasoline prices. Since 2023, a state Division of Petroleum Market Oversight has watched the fuel market for price gouging and unusual trading.
What LA drivers can do about high gas prices
Nobody can control the price of crude. Still, a few habits can lower your monthly fuel bill:
- Compare stations. Prices vary a lot between stations, even a few blocks apart. Unbranded stations are often cheaper than branded ones.
- Skip premium unless your car requires it. Premium costs more per gallon, and most cars run fine on regular.
- Pay cash if the station charges less for it. Many stations post a lower cash price.
- Drive smoothly. Hard acceleration, high speeds and idling all burn more fuel.
- Use transit for some trips. LA Metro caps fares at $5 a day, so a few rides a week can offset fuel costs.
For a sense of scale, a driver who buys 40 gallons a month at $6.08 spends about $243 on gas alone. Our guide to the cost of living in Los Angeles shows how fuel fits into a full household budget.
Will gas prices in Los Angeles go down?
Federal forecasters expect some relief, but not quickly. The EIA projects that crude prices will ease in 2027 as Middle East exports recover, with Brent averaging about $84 a barrel. It sees the national gas price averaging $3.56 in 2027, down from about $3.91 in 2026.
California will likely stay well above the national average even then. The tax and fee stack, the special blend and the smaller refining base do not go away when crude falls. That said, the switch to winter-blend gas usually trims prices in the fall. Forecasts like these can change fast if oil supplies shift again.
Frequently asked questions
What is the average gas price in Los Angeles?
Regular gasoline averaged $6.08 a gallon in Los Angeles for the week of October 12, 2026, according to the EIA. The national average was $4.33.
Why are Southern California gas prices so high?
Higher state taxes and climate program costs, a special gasoline blend, fewer refineries after two closures and higher margins. In 2026, a global jump in crude prices added to all of it.
How much of the price of gas in California is taxes?
About $1.55 a gallon in Los Angeles, counting state and federal excise taxes, sales tax, climate program costs and a storage tank fee.
When do gas prices drop in California?
Prices often ease in the fall when cheaper winter-blend gasoline arrives. In 2026, the state allowed it from September 28 instead of November 1.
Have a question about this topic? Ask in the comments below. Our editors read every comment and answer questions here, and we add useful answers to the guide.
Sources
- eia.gov/petroleum/gasdiesel
- eia.gov/outlooks/steo
- bls.gov/regions/west/news-release/consumerpriceindex_losangeles.htm
- cdtfa.ca.gov/taxes-and-fees/sales-tax-rates-for-fuels.htm
- cdtfa.ca.gov/formspubs/L1025.pdf
- energy.ca.gov/estimated-gasoline-price-breakdown-and-margins
- autl.assembly.ca.gov/system/files/2026-05/2025-cdtfa-cec-joint_agency_report_…
- sec.gov/Archives/edgar/data/0001534701/000153470126000032/psx-20…
- gov.ca.gov/2026/09/28/governor-newsom-takes-action-to-help-lower-pr…
- metro.net/riding/fares