California gas prices have risen 40 cents in the last 14 days

These are draining times for your bank account at the gas pump.

California gas prices have jumped up to 40 cents in two weeks, as refinery closures tighten fuel supplies across the state.

The statewide average now stands at $4.582 per gallon, up from $4.463 a week ago and $4.182 just 14 days ago, according to the American Automobile Association.

Energy experts say the spike is tied directly to shrinking refinery capacity.

Specifically, Valero’s Benicia refinery — a key Northern California supplier — is in the process of idling operations. The move follows other major pullbacks, including Phillips 66’s Los Angeles refinery, steadily reducing California’s ability to produce its own gasoline.

In 1982, California imported around 6% of its oil from foreign sources. Today, the Golden State imports roughly 70%.

“I’m afraid Valero will have more of an effect on our region,” Michael Ariza, Petroleum expert told the California Globe. “In the Bay Area we only have two out of five refineries producing gasoline, jet fuel, and propane. Valero is down, ConocoPhillips in Rodeo and Marathon in Martinez are only producing biodiesel.”

Places like San Francisco and San Rafael have prices topping $4.80 per gallon, marking some of the highest rates in the state right now.

Prices are expected to rise further this year.

Experts warned in a UC Davis study that by August 2026 — when the full impact of refinery closures is realized — California gas prices could climb by as much as $1.21 per gallon if no major market changes occur.

“In 2000, the California gas price was approximately $0.25 higher than the national average, but by 2025 the difference increased to $1.50,” wrote Bulat Gafarov, a co-author of the paper and an assistant professor of agricultural and resource economics at UC Davis.

The price gap between California and the rest of the United States has also widened. The national average is around $2.93 per gallon, putting California more than $1.50 higher.

The price surge comes as Gov. Gavin Newsom is attending a high-profile European gathering in Germany, where he participated in a panel discussion at the Munich Security Conference, even as fuel volatility intensifies back home.

In Northern California, growers warn rising diesel prices are threatening harvest season.

A farmer near Chico said the increase is hitting “big time.”

“We bought a lot of red diesel for the tractors for harvest already. Also, gas prices in Chico are climbing,” he told the Globe.

In Butte County, where the farmer is from, the regular gas averages about $4.42 per gallon, while diesel is around $4.76.

The farmer said higher fuel costs could cripple operations.

“The high price of diesel and gas for our tractors and in our farming almond and apiary operation is going to put a lot of farmers and beekeepers out of business,” he told the media outlet. “If there is a shortage we won’t be able to get our crops harvested. Most farmers in our area use diesel pumps for irrigation and it will be unaffordable.”

He warned consumers will ultimately feel the impact in higher grocery prices, affecting everything from tree nuts and honey to cattle, rice and produce.

Lawmakers warn of broader fallout.

“California is at a breaking point,” Republican state Sen. Suzette Martinez Valladares told FOX Business. “Refineries are shutting down, supply is shrinking, and families are paying more every day.”

These gases prices are being felt as Democrats push for an additional mileage-based tax that would charge Californians for every mile they drive.

The tax, also known as a road usage charge, would require drivers to pay a fee based on the number of miles they drive rather than how much gasoline they purchase. The proposal, lawmakers say, is designed to replace declining gas tax revenue as more drivers switch to electric and fuel-efficient vehicles.

Californians currently pay the second-highest gas prices in the nation, behind only Hawaii — and critics warn a mileage tax would pile on even more costs at a time when fuel prices are already climbing.

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