Why does California pay so much more for gas?!?

The question that has perplexed Califonrians for decases finally gets an answer from the Contra Costa Times:

California boasts the biggest population of any state, the largest manufacturing base and agricultural harvest, and the highest waterfall and lowest valley. But the Golden State has recently laid claim to a less illustrious distinction: home of the nation's highest-priced gasoline.

During this spring's gasoline price run-up, California inherited the title from Hawaii, the island state that relies almost entirely on expensive imported fuel. Even after recent declines, last week's state average of $2.57 outpaced Hawaii by 6 cents and the national average by 39 cents, according to the AAA of Northern California.

Why?

There are three major reasons that Californians pay more at the pump: far stricter environmental standards, a larger proportion of imported fuel, and higher taxes than most states. Though the oil industry vigorously denies it, some experts also believe consolidation and market manipulation play a role.

"There are very substantial barriers to entry that protect a very tight oligopoly," said Mark Cooper, director of research for the Consumer Federation of America. "When you get so few producers in an individual market, it's easy to raise prices even without colluding."