(The Center Square) — Gas prices in Arizona and Nevada are cheaper than in California for several reasons, according to American Automobile Association spokesperson John Treanor.
Factors vary from regulations and gas taxes to supply and demand.
“There are a lot of nuances with prices,” Treanor told The Center Square.
Nevada on Tuesday saw an average gas price of $3.80 per gallon, according to AAA. For Arizona, gas averaged $3.36 a gallon.
California’s average price Tuesday was $4.58 per gallon, the highest rate in the nation.
Washington’s and Oregon’s prices are also higher than Nevada and Arizona. Washington’s price averaged $4.40 a gallon on Tuesday. Oregon’s average was $3.98.
Gas prices are affected by state taxes. According to the Tax Foundation, California had the nation’s highest gas tax per gallon at 68 cents.
Arizona and Nevada have much lower gas tax per gallon prices. Nevada ranked 40th with 24 cents per gallon, and Arizona finished 46th with 19 cents per gallon.
While gas taxes play a role, oil refinery regulations also increase prices, Treanor said.
Parts of Arizona and Nevada get their gas from California oil refineries, which makes fuel prices in those areas more expensive due to California’s regulations on refining oil, he said.
The middle of Arizona, including Maricopa County, buys its gas from California. In contrast, the outer areas of the state, such as Pima County, get their gas from Gulf states, which makes it less expensive, Treanor said.
In addition, states with a lot of fuel and low demand have lower prices than states with little fuel and high demand, he said.
Around 60 percent of fuel prices are determined by world prices for a barrel of crude oil, Treanor said. Once an oil refinery in America buys the crude oil, he said, the fuel prices from these refiners are going to be different due to different state regulations.
California is more expensive than other states because of its regulations, Treanor said.
Prices are also affected by the cost of transporting fuel from oil refiners to gas stations, the AAA spokesperson said.
