Gas Prices Are High For July 4. California’s Price-Gouging Fixes Are Still On The Shelf
July 3, 2026
Cal Matters
Severin Borenstein, Energy Institute Faculty Director, argues that California’s high gas prices are driven more by structural market issues especially limited refinery capacity and the pricing power of major branded gas stations than by simple price gouging, and that some of the state’s unused anti-price-gouging tools could risk worsening supply shortages rather than lowering prices.
“The suit taps into a longstanding theory: Severin Borenstein, an energy economist at UC Berkeley, has pointed to what he calls a ‘mystery gasoline surcharge‘ — the part of California’s high prices left unexplained after taxes, environmental programs and production costs are accounted for — that shows up after gas leaves the refinery.
‘The real question is, do they have evidence that the company or the gas stations are using the company to coordinate their activities?’ Borenstein said of the suit. ‘That would be a major antitrust problem.'”
Also featured on: Santa Monica Daily Press.
Photo: calmatters.org