What was claimed
California gas is $2 more expensive than the rest of America purely due to Sacramento’s climate posturing
Our verdict
InaccurateAuthoritative analyses identify multiple drivers of California’s higher prices, including high state gas taxes, special fuel blend requirements, environmental compliance costs, limited refinery and supply options, and market isolation, not climate policy alone. While environmental and climate-related regulations do add significant costs (such as cap-and-trade and low carbon fuel standards), they are only part of a broader set of factors and cannot be described as the sole cause. Higher California prices result from many factors (state taxes and fees, unique fuel formulations, refinery capacity and outages, distribution costs, and regulatory programs), so attributing the difference solely to Sacramento climate policies is inaccurate.
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Key findings
California gas is $2 more expensive than the rest of America purely due to Sacramento’s climate posturing
This price difference is purely due to Sacramento’s climate posturing