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Why is a gas station in California charging $7.60 per gallon?

Gas prices CA
Posted at 11:26 AM, Oct 21, 2021
and last updated 2021-10-21 14:26:27-04

It's no secret that gas prices are on the rise. According to AAA, the nationwide average of $3.37 for a gallon of gas is about $1.20 higher than it was at this time a year ago.

But while Americans across the country are paying more at the pump these days, it's unlikely that they're paying more than motorists in Gorda, California.

KFSN-TV in Fresno, California, reports that gas prices in Gorda recently reached nearly $7.60 a gallon, with prices for premium gas going for $8.50 a gallon.

At $4.53 a gallon, it's true that gas prices in California are higher than the national average. But the exorbitant prices in Gorda are far from the norm in the state.

Gorda and its lone gas station are notorious for posting high gas prices. In July 2019, KSBW-TV in Salinas, California, says the AmeriCo Gas station in the town charged $11.75 for a single gallon of gas.

According to KSBW, the small town of Gorda is located off Highway 1 on the California coast. It's a rural region bound by the Pacific Ocean directly to the west and the mountains of the Southern Coast Ranges directly to the east, with little room in between to build any infrastructure.

As a result, the AmeriCo gas station in Gorda is one of the few places to fuel up in that particular stretch of Highway 1. According to KSBW, the closest gas station north of Gorda is 40 miles away, and the nearest station headed south is 12 miles away.

Because there's so little competition for gasoline, the station can charge much higher prices than the rest of the state.

AAA reports that the average cost of gas in Monterey County, California is $4.06 — lower than the state average.

While the rest of the country likely won't be paying Gorda's prices any time soon, AAA reported earlier this week that gas prices are still on the rise. The agency says that prices are up because of the high costs of crude oil as well as falling domestic gasoline supply levels.