OUT ON A LIMB: Policies, not greed, driving California’s sky-high gas prices, study finds.

As Californians continue to wonder why they suffer disproportionately at the pump compared to other states, a new study from a prominent researcher says the state’s perpetually high gas prices are largely “self-inflicted.”

Michael Mische with the USC Marshall School of Business recently published “A Study of California Gasoline Prices,” diving into the reason why California is typically the most expensive state in the U.S. to fill up your vehicle.

The conclusion: California’s high gas prices are the “result of directed policies and a litany of regulations, taxes, fees, and costs,” according to Mische.

“The data is overwhelmingly compelling,” he told KTLA on Monday. “There is no evidence of price gouging, either by gas station owners or refiners or oil producers in the state — at least widespread.”

Mische came to that conclusion after examining about 50 years of gas prices throughout the state and analyzing what led to spikes and lulls.

“It is uniformly acknowledged that California has the most stringent regulatory … environment, for oil and gas companies in the world,” the study reads in part. “Regulatory oversight, irrespective of one’s (political) perspective, is layered into and accumulates throughout the supply chain, ultimately adding to the cost burdens of compliance for oil and gas industry operators, which, in turn, contribute to higher consumer prices at the pump.”

Mische and other experts refute Gov. Gavin Newsom’s claim that oil companies have been “gouging” California drivers for years and that greed has played a larger role than policies and market forces. The governor has targeted the industry with investigations and legislation aimed at increasing transparency and keeping prices in check.

In a statement to KTLA, a spokesperson for Newsom said he has “avoided severe gasoline price spikes like the historic 2022 spike” since he signed a price-gouging bill two years ago.

When Newsom transitions from podcasting to an actual presidential bid, it will be fun to him explain why oil companies aren’t attempting to price gouge other states were gas prices are much lower. In the meantime:

I’d say California is on the wrong track, has gone off the rails and is a train wreck, but that would imply we were capable of building rails and track.

— Adam Carolla (@adamcarolla) March 31, 2025