{"id":2618,"date":"2026-06-11T12:03:09","date_gmt":"2026-06-11T19:03:09","guid":{"rendered":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/11\/gas-prices-in-san-diego-and-rest-of-california-vary-from-one-station-to-another-and-the-differences-are-stark\/"},"modified":"2026-06-11T12:03:09","modified_gmt":"2026-06-11T19:03:09","slug":"gas-prices-in-san-diego-and-rest-of-california-vary-from-one-station-to-another-and-the-differences-are-stark","status":"publish","type":"post","link":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/11\/gas-prices-in-san-diego-and-rest-of-california-vary-from-one-station-to-another-and-the-differences-are-stark\/","title":{"rendered":"Gas prices in San Diego and rest of California vary from one station to another \u2014 and the differences are stark"},"content":{"rendered":"<div>\n<div>\n<p>A recent committee hearing in Sacramento about gasoline prices offered more specifics about something many San Diego drivers know all too well \u2014 that prices vary widely from one gas station to the next.<\/p>\n<p>Read more <a href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/11\/all-lanes-of-north-i-15-reopened-after-morning-crash-killed-2-good-samaritans\/\">All lanes of north I-15 reopened after morning crash killed 2 good Samaritans<\/a><\/p>\n<p>It\u2019s not unusual to see striking differences, even when the stations are practically, or literally, right around the corner from each other.<\/p>\n<p>For example,  the posted price for a gallon of regular at a Petromerica station on 16th Street in downtown San Diego on Tuesday was $5.53. Yet barely one block away, the price for a gallon of regular at an ARCO station came to $6.69. That\u2019s a difference of $1.16 per gallon.<\/p>\n<p>On the same day, a Chevron station off Interstate 5 in Del Mar charged $5.90 for customers paying with cash or a Chevron card. But about a quarter-mile east on the same street, a Shell station\u2019s price for a gallon of regular was 40 cents higher \u2014 $6.30, and there were four cars lined up at the fueling pumps.<\/p>\n<p>The disparity in prices <span>across the state<\/span> was one of many issues addressed June 3 at a California Senate oversight hearing of the Committee on Energy, Utilities and Communications that lasted just over four hours.<\/p>\n<p>The chief deputy director of the California Department of Tax and Fee Administration, Gentian Droboniku, gave a presentation on the price differentials among branded, unbranded gas and \u201chypermart\u201d gas stations in the state.<\/p>\n<p>Branded stations refer to those that partner with a major oil company, such as Shell, Chevron or ARCO, to sell their specific fuel. Unbranded stations can be small, independently owned mom-and-pop stations such as Petromerica, and Stars and Stripes, as well as those connected to large chain retailers like 7-Eleven.<\/p>\n<p>\u201cThe gasoline these unbranded stations sell is produced by the same refineries as branded stations and drawn from the same tanks as branded fuel, but it doesn\u2019t contain a branded proprietary cleaning additive,\u201d Droboniku said. \u201cIt does contain an additive that meets the requirements set by the California Air Resources Board.\u201d<\/p>\n<div>\n<\/div>\n<p>Hypermart gas stations are typically tied with large supermarket chains or warehouse retailers, such as Costco.<\/p>\n<p>Many drivers across the Golden State who shop around for the lowest gas prices in their driving area have long been aware that prices at branded stations are typically higher than fuel at unbranded stations, or warehouse locations where customers often must be members to fill up.<\/p>\n<p>But Droboniku\u2019s presentation offered some granular details compiled from a joint report the CDTFA conducted with the California Energy Commission that broke down average prices, retail margins and margin percentages.<\/p>\n<p>The\u00a0retail margin is the difference between the price a business pays to acquire a product and the price it sells that item to customers.<\/p>\n<div>\n<\/div>\n<p>In 2025, the report said branded stations, on average, sold their gasoline at higher prices per gallon across the board, compared to unbranded and hypermart stations.<\/p>\n<p><iframe aria-label=\"Table\" data-external=\"1\" frameborder=\"0\" height=\"270\" id=\"datawrapper-chart-Qnixo\" loading=\"lazy\" scrolling=\"no\" src=\"https:\/\/datawrapper.dwcdn.net\/Qnixo\/3\/\" style=\"width: 0; min-width: 100% !important; border: none;\" title=\"Gas prices vary widely by brand\"><\/iframe><\/p>\n<p>The retail margins last year came to 87 cents per gallon at Chevron, 83 cents for Shell, 71 cents at 76 stations (formerly known as Union 76) and 44 cents at ARCO, according to the study.<\/p>\n<p>Compare that to unbranded stations in 2025 that had average retail margins of 45 cents, which represented 10.3% of their retail price. Hypermarts had retail margins of 27 cents on average, accounting for 6.4% of the retail price.<\/p>\n<p>Looking at Chevron in particular, its retail margin per gallon back in 2013 came to just 35 cents.<\/p>\n<p>\u201cRetail margins are increasing, especially for branded gasoline,\u201d Droboniku said.<\/p>\n<p>He went on to say that data collected between January and September 2025 at California\u2019s 100 most expensive gas stations and the 100 least expensive stations showed a price differential of $1.76 per gallon.<\/p>\n<p>A wider comparison of the top 500 gas stations and the bottom 500 told basically the same story, with <span>a difference of $1.28 between their averages.<\/span><\/p>\n<h4>What\u2019s going on?<\/h4>\n<p>The reasons <span>why<\/span> branded gasoline <span>costs more <\/span>in California have long been debated.<\/p>\n<p>Some fuel analysts surmise there are more gas stations per capita in other states, thus reducing\u00a0 price competition, and that land values in the Golden State may make it more profitable to convert old gas stations into other businesses.<\/p>\n<p>During the hearing, Zachary Leary, chief lobbyist for the Western States Petroleum Association trade group, alluded to the fact that at least eight jurisdictions in Northern California have banned the building of new gas stations, actions driven primarily by climate action goals and promoting the adoption of electric vehicles.<\/p>\n<p>In March 2021, the city council in Petaluma unanimously voted to prohibit the creation, expansion, reconstruction and relocation of gas stations.<\/p>\n<p>When asked during the hearing if the price difference is similar in certain respects to name-brand prescription drugs compared to lower-cost generics, Leary said, \u201cI would liken it to Cheetos versus Cheese Puffs\u201d sold at grocery or convenience stores.<\/p>\n<p>\u201cThere\u2019s different components that go into each of them \u2014 brand loyalty, commercial, you name it,\u201d Leary said. \u201cThere\u2019s a ton of things that go into why branded is a different cost than unbranded.\u201d<\/p>\n<p>Read more <a href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/11\/with-contract-expiring-july-1-uc-doctors-criticize-prolonged-negotiations\/\">With contract expiring July 1, UC doctors criticize prolonged negotiations<\/a><\/p>\n<p>Jamie Court, a longtime critic of California oil companies and president of Consumer Watchdog, was blunt, telling the committee he believes in-state refiners have taken advantage of customers.<\/p>\n<p>\u201cOther states don\u2019t do this,\u201d he said, referring to branded stations\u2019 high retail margins. \u201cThat\u2019s the real key. It has to do with consolidation in the market.\u201d<\/p>\n<p>Court made reference to what\u00a0UC Berkeley professor Severin Borenstein has called the \u201cmystery gasoline surcharge.\u201d<\/p>\n<p>While California gas prices have high for a long time, they took a jump after an explosion at the Exxon Mobil refinery in Torrance in February 2015. Once repairs were made and the refinery came back online, however, an overhang remained \u2014 an extra, residual price that has never gone away, even after state taxes and fees are accounted for.<\/p>\n<p>\u201cBefore that explosion, there wasn\u2019t a problem,\u201d Court said. Refiners \u201cgot used to making higher profits \u2026 and that was their way to do it.\u201d<\/p>\n<h4>Casting an eye on algorithms<\/h4>\n<p>Droboniku of CDTFA said his organization wants to look at whether algorithms and other technologies are being used to affect prices at the pump.<\/p>\n<p>\u201cThese algorithms tell the sellers what to change to maximize profit,\u201d he said. \u201cIt appears that many in the market at all levels (are) using some software and many are using exactly the same software. It\u2019s really opaque in an area (that) could use some more sunlight.\u201d<\/p>\n<p>According to Droboniku, a recent study of 14,000 gas stations in Germany found that when stations adopted algorithmic pricing, their margin increased by as much as 15%, possibly indicating tacit collusion.<\/p>\n<p>The director of the recently created Division of Petroleum Market Oversight told the committee that Assembly Bill 325 \u2014 passed by the Legislature and signed into law by Gov. Gavin Newsom, which went into effect this year \u2014 prohibits businesses from using shared software algorithms to coordinate prices.<\/p>\n<p>\u201cWe have have notified market participants\u201d about the new law, Tai Milder said. \u201cIf companies do that and it has the effect of fixing prices, that is certainly something that\u2019s actionable.\u201d<\/p>\n<h4>An uncertain gasoline landscape<\/h4>\n<p>California has often been described as a \u201cfuel island\u201d that is disconnected from refining hubs in the U.S., lacking inbound pipelines from other states and requiring a unique blend of specially formulated gasoline that reduces air pollution.<\/p>\n<p>Expensive gasoline has irritated California drivers for decade and the state\u2019s policies regarding the petroleum industry and its efforts to transition to electric vehicles have been an increasingly hot political issue.<\/p>\n<p>Six years ago, Newsom issued an executive order banning the sale of new gasoline-powered cars, SUVs and light trucks by 2035.\u00a0When gas prices spiked to more than $6 a gallon in late summer and early fall of 2022 and 2023,\u00a0Newsom accused\u00a0oil companies of \u201clying and gouging Californians to line their own pockets.\u201d<\/p>\n<p>Industry officials have long complained about what they regard as a hostile business environment in the state, and two major refineries have closed in recent months.<\/p>\n<p>The Phillips 66 twin refinery in the Los Angeles area shut down late last year and the Valero facility in the Northern California town of Benicia ceased operations at its 145,000 barrels-per-day operations two months ago.<\/p>\n<p>The Valero and Phillips 66 facilities combined to account for about 18% of California\u2019s total refining capacity to process gasoline, diesel, aviation and other transportation fuels. Imports from foreign countries can help pick up the slack, but the closures may leave the state more vulnerable to price spikes.<\/p>\n<p>The closures led a more conciliatory tone last year between state officials and oil companies, resulting in the Legislature passing, at Newsom\u2019s urging, Senate Bill 237. The law included provisions easing permitting requirements in and around Kern County, the heart of California\u2019s oil patch, in an effort to boost in-state oil production.<\/p>\n<p>But relations still appear volatile.<\/p>\n<p>Chevron recently posted signs at some of its gas stations that read,\u00a0\u201cCalifornia politicians are choosing foreign oil and fuels over local jobs and lower costs.\u201d The signs include a QR code directing consumers to the company website, calling on consumers to \u201cspeak up for affordable, reliable energy.\u201d<\/p>\n<p>Newsom\u2019s press office clapped back on social media over the Memorial Day weekend, telling drivers to avoid buying gas at Chevron stations.<\/p>\n<p>\u201cPro tip: unbranded gas comes from the same refineries, storage tanks, and pipelines, and it meets the same state standards to keep your engine running clean, even if it doesn\u2019t have a fancy name like \u2018Techron,\u2019 \u201d the post on X said. \u201cBig Oil is already making billions off Trump\u2019s Iran War; don\u2019t let them rip you off even more by overpaying for the brand name.<\/p>\n<p>California\u2019s gasoline prices are the highest in the nation and the ongoing conflict in Iran has only\u00a0 accelerated things.<\/p>\n<p>According to AAA, the average price for a gallon of regular in the San Diego area got as high as $6.21 on May 6.<\/p>\n<p>Although prices have slackened a bit since then, the average on price on Thursday stood at $5.83 per gallon. That\u2019s $1.70 higher than the national average of $4.13.<\/p>\n<p>Read more <a href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/11\/irans-kharg-island-is-key-to-its-oil-exports-targeting-it-carries-major-risks\/\">Iran\u2019s Kharg Island is key to its oil exports. Targeting it carries major risks<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A state Senate hearing touched on high prices, hypermarts, algorithms \u2014 and Cheetos.<\/p>\n","protected":false},"author":1,"featured_media":2617,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-2618","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Gas prices in San Diego and rest of California vary from one station to another \u2014 and the differences are stark - Los Angeles Moving Insider<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/11\/gas-prices-in-san-diego-and-rest-of-california-vary-from-one-station-to-another-and-the-differences-are-stark\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gas prices in San Diego and rest of California vary from one station to another \u2014 and the differences are stark - 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