The five most expensive states for gas are California, Hawaii, Washington, Oregon, and Nevada.
California's gas price is impacted by the state's strict regulatory environment and lack of internal production.
It is also in the midst of losing another 17 percent of its existing refinery capacity after the Phillips 66 Wilmington refinery closed in late 2025, and the Valero Benicia refinery is set to close in April 2026. These closures are part of a broader trend of refinery closures in California; Phillips 66's Rodeo refinery closed in 2024, and Marathon's Martinez refinery closed in 2020.
California lacks consistent supply lines to other refinery hubs around the country. It also requires a unique blend of gasoline to comply with its environmental regulations. As such, it will likely have to be supplied by imports from Asia and elsewhere on the West Coast.
Then there's California's gas tax, the highest in the country at $0.596 per gallon, and on top of that the state charges sales tax of 7.25 percent at the pump. These factors combine to make California's gas the most expensive in the nation with an average price of $4.593 per gallon.
Hawaii's logistical challenges are even greater. The archipelago sits more than 2,500 miles away from the West Coast, and nearly all of its goods are imported. Grassroot Institute of Hawaii notes that domestic shipping runs into the Jones Act, a 1920 law that requires all shipping between U.S. ports to be carried by ships built in the U.S.; these ships must fly the American flag and be owned and operated by a majority American crew.
Nevada does not produce much oil at all, and also suffers from the logistical challenges of the West Coast. Nevada relies on supplies from California refineries and is affected by the price shocks. It has a $0.23805 per gallon gas tax. A gallon of gas on average costs $3.652 in the state.
