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Yes, you are quite right, California requires special blend gas, which is more costly. Also, all the filling stations must put there underground tanks in leak proof vaults, which adds to the overhead costs and are reflected in the increased price. Not to mention higher property taxes.Much of the $2.00 difference in California is due to the regulation that requires gas sold in California to be refined at a California refinery. Their merchants can't just buy on the spot market like much of the rest of the nation.
They gas they sell must meet California standards which the state only certifies if the producer is in California. At least it was that way 20 years ago.
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