Why Are Gasoline Prices So High?

James Hamilton has a good explanation.  If you live in a place with above average gas prices, his map may give you a clue.

Nutshell: overall gas prices are a product of normal seasonal fluctuation and the price of crude oil.  Combining the two effects produces an estimate of gas prices very close to actual.

As for state-to-state variations, look at taxes and other gasoline-related regulations.  (Hamilton doesn’t address this, but his map makes clear the significant role that states play.  Otherwise, why would adjacent counties in differing states have such widely different prices?