CALIFORNIA—On December 26, the Mobil Gas station in Beverly Hills was selling gas for $5.59 per gallon, which is over $1.00 more than the rest of the nation. It was $4.41- $5.44 in 2024. The rest of the nation is seeing a drop in gas prices. California continues to lead the country in the cost consumers pay for gas.
“In October 2025, the California Energy Commission released a report containing a breakdown of what Californians are paying for. The following explanations came directly from the CEC website.
Estimated_Gasoline_Price_Breakdown_and_Margins_12_15_2025_ADA
State and Local Sales Tax: An average state tax of 2.25 percent is used in the calculation of the distribution margin, although the actual sales tax rate does vary throughout California.
Low Carbon Fuel Standard (LCFS): Pass through the cost associated with the California Air Resources Board (CARB) Low Carbon Fuel program.
Volume-Weighted Average taken across the same sales channels used in the Wholesale Gasoline Average Price.
State Excise Tax: The California state excise tax is currently 61.2 cents per gallon.”
California Governor Gavin Newsom issued a press release in response to the release of this report. Newsom indicated that a California study could lead to lower gas prices in the future.
Other states are seeing some relief at the pump. December gas prices for the state of Alabama was reported as low as $2 per gallon for unleaded gas. Some other stations charged $2.39 per gallon to a state high of $2.65 per gallon.
Texas is also experiencing lower prices averaging $2.42-$2.87 per gallon.
According to GasBuddy, the best gas prices in Charlotte, North Carolina, are at Sam’s Club at $2.19 per gallon, and at the Hot Spot in Clover, N.C., $2.24 per gallon.
Colorado residents are also getting a break from high gas prices paying $2.41 to $2.48 per gallon.
Residents in the Washington D.C. metro area are paying an average of $3.17 per gallon. Specialty grades may be as much as $3.72.
In July 2025, Newsom issued a press release on his website claiming that Trump’s statement that California’s gas prices are “much higher” than anywhere else in the nation was a lie.
“Prices actually remain lower now than they were one week ago, one month ago, and one year ago,” Newsom stated.
