CA refinery product network is isolated from other parts of USA mostly because of stringent environmental requirements. As a result CA customers may rely only on products made in CA, and limited supply market causes higher prices. By similar reasons HI has the highest gas price in the country (CA is close second).

>I figured that. I'm still confounded by why gas prices are so high in CA with some of the refineries being in this state.
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>>Wow, that's high. When I filled up last weekend it was $2.59 for regular (87 octane).
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>>>What are gas prices in your neck of the woods. Here the last couple days I've seen from 3.17 to about 3.33/gallon. I've heard it could be 4.00 per. up north in SF.
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>>>>Oil prices spiked this morning when Iranian President Mahmoud Ahmadinejad appeared on television, because of uncertainty over what he was going to announce. When he started awarding medals to the troops who had captured the Britons, traders assumed the worst.
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>>>>But by the end of Ahmadinejad's television appearance it was apparent that the soldiers were heading home, and the price of a barrel of oil started to retreat from recent highs, giving up more than $1 to drop to about $64.
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>>>>http://abcnews.go.com/Business/story?id=3007435&CMP=OTC-RSSFeeds0312