If you pulled into a Chevron in Burbank or a Safeway in Roseville this morning, you probably noticed something that hasn't happened in a long time. The numbers on the sign didn't make you want to cry.
Honestly, it’s been a weird start to the year. While the rest of the country is celebrating a national average that's finally dipped below that psychological $3 mark, we’re still living in the California bubble. But even here, things are... okay? Well, okay for us.
Gasoline price today California is sitting at a statewide average of $4.21 for regular unleaded.
That’s a far cry from the $6 nightmares of 2022, and it’s actually a few cents lower than what we were paying just last week. If you've been driving around the Central Valley, you might have even seen some rogue stations in Modesto or Merced flirting with the high $3 range. It feels like a win, but there’s a massive "but" coming.
The Current State of the Pump
Let’s look at the actual damage across the state. It’s never one-size-fits-all in California. If you’re in Mono County, you’re likely still paying a "scenic tax" that keeps you well above the average. Meanwhile, the metro areas are seeing a bit of a relief valve.
As of January 13, 2026, here is the rough breakdown of what you’re seeing at the pump:
- Los Angeles/Long Beach: $4.36
- San Diego: $4.25
- San Francisco: $4.42
- Sacramento: $4.09
- Fresno: $4.12
- Modesto: $3.90 (The lucky ones)
It’s a bit of a relief. Crude oil prices—specifically West Texas Intermediate (WTI)—have been hovering around $61 a barrel. That’s low. It’s the kind of stability that makes the oil companies less jumpy, and for once, the global supply chain isn't throwing a mid-week tantrum.
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But don't get too comfortable.
Why California Still Pays the "Sunshine Tax"
You've heard people complain about it at every barbecue since 2010. "It’s the taxes!" "It’s the refineries!"
The truth is, it’s both, plus a healthy dose of geography. California is an "energy island." We don't have pipelines bringing in finished gasoline from Texas or the Midwest. We either make it here or we ship it in on a boat from overseas.
Our boutique fuel blend—the one required by the California Air Resources Board (CARB) to keep the smog from choking us—is more expensive to produce than the "normal" gas used in Arizona or Nevada.
And then there's the excise tax. On July 1, 2025, the state gas tax ticked up to 61.2 cents per gallon. When you add the federal tax and the various environmental fees, you’re basically paying over $1.20 in taxes and fees before a single drop of actual fuel enters your tank.
The Looming 2026 Refinery Crisis
Here is the part nobody is talking about at the local Shell station: we are about to lose a lot of our "island" capacity.
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The Phillips 66 refinery complex in Los Angeles is winding down. Even more stressful? Valero’s Benicia refinery is slated to shut its doors in April 2026. Experts like Professor Michael Mische from USC have been sounding the alarm that these closures could gut our local supply by nearly 10%.
When you lose 10% of the supply in a state that already can’t get gas from its neighbors, prices don't just "go up." They spike. Some analysts are terrified we could see an 80% jump later this year, potentially pushing gasoline price today California into the $7 or even $8 territory by the time the summer travel season hits.
It’s a classic supply-demand squeeze that’s being accelerated by the state’s aggressive push toward EVs. Refiners aren't exactly incentivized to spend billions on maintenance for plants that the state government wants to be obsolete by 2035.
The VMT Tax: A New Way to Pay?
While the pump price is the immediate concern, there’s a "stealth tax" looming in the background. Because so many Californians have switched to Teslas and Rivians, the state is losing out on that 61.2-cent-per-gallon gas tax. Those roads still need fixing, and the money has to come from somewhere.
Enter the Vehicle Miles Traveled (VMT) tax.
California is currently testing a pilot program where you pay based on how many miles you actually drive rather than how much gas you buy. If you’re a long-range commuter from the Inland Empire to LA, this could eventually hit your wallet harder than the gas price itself.
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How to Not Get Ripped Off Today
So, you need to fill up today. What do you do?
- Skip the Freeway Stations: This sounds obvious, but the price difference between a station right off I-5 and one three blocks into a neighborhood can be 40 cents.
- Warehouse Clubs are Still King: Costco and Sam’s Club are consistently 20 to 30 cents below the average. If you have a membership, use it.
- The "Mid-Week" Myth: People used to say Tuesday was the cheapest day. Nowadays, with algorithmic pricing, that’s mostly bunk. However, prices do tend to jump on Thursday afternoons in anticipation of weekend travel.
- Check the "Cash" Price: Many independent stations in the Valley still offer a 10-cent discount for greenbacks. In 2026, that’s a significant savings.
What Happens Next?
The EIA (Energy Information Administration) is actually forecasting that national prices will stay low through most of 2026 because of high domestic oil production. We’re pumping more oil than ever before.
But California is the outlier.
We are currently in the "sweet spot." It’s winter, so we’re using a cheaper winter blend of fuel. Demand is lower because nobody wants to drive to Tahoe in a blizzard. And the refinery closures haven't fully constricted the supply yet.
If you’re planning a road trip, do it now. By the time we hit the "Summer Blend" switchover in May—and as those refinery gates start closing for good—the $4.21 we’re seeing today is going to look like a bargain.
Actionable Next Steps:
Keep an eye on the Valero Benicia closure updates specifically. If you see news that the shutdown is accelerating, expect a price jump within 48 hours. For now, enjoy the "cheap" $4 gas, download a fuel-tracking app like GasBuddy to find the outliers, and maybe start looking at that hybrid you've been eyeing. The "Energy Island" isn't getting any cheaper to live on.