California Gas Prices Soar as Iran Conflict and Refinery Closures Intensify Pain at the Pump

California drivers are facing the highest gas prices in the nation, exacerbated by the ongoing conflict in Iran and recent refinery closures. The average cost of a gallon of regular gas in California is $4.91, a 6% increase from a week ago and 11% from a month ago, according to AAA , significantly higher than the national average of $3.32 per gallon.

Impact of the Iran Conflict

The conflict in the Persian Gulf is disrupting oil supplies and driving up the price of crude oil. Approximately 20% of the world’s daily oil consumption travels through the Strait of Hormuz, which is now under threat due to the conflict . Any widening or continuation of the war will likely further increase crude oil prices .

Refinery Closures Add to the Pressure

California’s gas prices are particularly high due to reduced local supply resulting from recent refinery closures. The Phillips 66 refinery in Wilmington closed in October, and the Valero refinery in Benicia is likewise in the process of closing, reducing the state’s refining capacity by nearly 20% . These closures are exacerbating supply bottlenecks and increasing reliance on imported gasoline.

California’s Unique Challenges

Several factors contribute to California’s consistently higher gas prices compared to other states. These include higher taxes, stricter environmental regulations requiring cleaner, more expensive gasoline blends, and a decline in crude oil production within the state .

In 2024, only 23% of the crude oil refined in California was produced within the state, with 63% coming from outside the country, including approximately 30% from the Middle East .

Regional Price Variations

As of March 6, 2026, gas prices in Los Angeles and parts of the San Francisco Bay Area have reached $5 per gallon, with some stations nearing $6 . In Orange County, the average price increased to $4.841, the highest since November 10, 2023 . Los Angeles County saw an average price of $4.88 on Thursday, March 6, 2026 .

Looking Ahead

Predicting the duration of the price spike is difficult, as it depends on the evolution of the conflict in Iran and its impact on crude oil prices . California’s reliance on imported gasoline and its unique regulatory environment make it particularly vulnerable to global energy disruptions.