California gas prices are the highest in the U.S., but there's no proof of price gouging. Here's why.
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For years, California leaders accused oil companies of price gouging at the pump, but a state investigation found no evidence of that. Instead, a CBS News California investigation found what's really driving the highest gas prices in the U.S.
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CBS News California Investigates California gas prices are the highest in the U.S., but there's no proof of price gouging. Here's why. By Julie Watts , Julie Watts CBS California Investigative Correspondent Julie Watts is a national-award-winning investigative correspondent for CBS News, covering California. Her investigations, Capitol accountability reports, and solutions-oriented journalism air weekly on CBS stations across California. Read Full Bio Julie Watts , Richard Ramos Richard Ramos Web Producer, CBS Sacramento Richard Ramos is a web producer for CBS Sacramento who was born and raised in Sacramento. He graduated with a BA in Journalism from CSUS. Read Full Bio Richard Ramos April 2, 2026 / 10:48 PM EDT / CBS News California Add CBS News on Google For years, California leaders accused oil companies of price gouging. Instead, a six-month-long CBS News California investigation revealed a complicated reality shaped by state policies, refinery closures, and global supply risks that uniquely impact California's isolated fuel market. What CBS News California Investigates found: Why California gas costs more: Higher taxes, labor and business costs, combined with environmental programs, regulations, and the state's unique fuel blend, drive up baseline prices. The political narrative is shifting: After failing to prove price gouging — and grappling with the impact of two shuttered refineries — state leaders are now publicly acknowledging the need to incentivize oil companies to stay. Why refineries are leaving: Rising costs, increasing regulations, long-term policy uncertainty, and shrinking returns Why global conflict matters: California's growing reliance on overseas refining is increasing volatility — and validating long-standing industry warnings that outsourcing refining increases the risk of price spikes. $6 per gallon California drivers pay the highest gas prices in the nation. As the conflict in the Middle East increases gas prices globally, California gas c...
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