Sylvie Willis
California has some of the highest fuel prices in the US, with gas prices in the state and Hawaii topping the list. As of June 20, 2025, the average fuel price in California was $4.760. While fuel prices have been falling yearly since 2022 due to slowing demand, the Energy Information Administration (EIA) predicts a rise in global consumption of liquid fuels in 2025.
| Characteristics | Values |
|---|---|
| Average Diesel Price in California | $4.760 |
| States with the Highest Gas Prices | California and Hawaii |
| States with the Lowest Gas Prices | Mississippi and Louisiana |
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What You'll Learn
Rewards programs for fuel discounts
The average price of diesel fuel in California is currently $4.760 per gallon. To save money on fuel in California, you can enrol in a rewards program. These programs are typically free to join and provide consumers with cents back for every gallon of gas purchased.
- Earnify: Earnify is BP's rewards program, which also includes its subsidiaries Amoco and AMPM. Standard members save five cents per gallon on all fill-ups. Amazon Prime members can link their Amazon and Earnify accounts to save 10 cents per gallon on fuel. You can also earn points, with 200 points equalling $2 in savings or an additional five-cent per gallon discount.
- Exxon Mobil Rewards+: This program allows individuals to earn rewards on gas purchases and convenience store or car wash transactions.
- Shell: Shell offers 3 cents per gallon back on purchases for infrequent consumers, with a clear path to higher tiers.
- Circle K Rewards (Inner Circle): This program has two membership tiers. Basic members benefit from three cents off per gallon, in-store discounts, and the 6th item free on most Circle K products. Premium membership offers five cents off per gallon, exclusive deals, and early notice of new products. You can upgrade to Premium once you spend $500 on fuel and merchandise.
- California Clean Fuel Reward (CCFR): This program was created by the State of California to incentivize the purchase of electric or hybrid vehicles to reduce emissions. California residents who buy or lease a qualifying electric or hybrid vehicle can receive a rebate of up to $750.
To maximize your savings, it is recommended to enrol in a rewards program for a gas station that you frequently visit, as many programs offer higher rewards rates to loyal customers. Additionally, consider using apps like GasBuddy and AAA to compare gas prices at nearby stations.
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Cash-back credit cards
As of June 2025, the average price of diesel fuel in California is $4.760.
If you're looking to save money on diesel fuel, one option is to use a cash-back credit card. These cards offer rewards on purchases, including diesel fuel, and can help you earn money back on your spending. Here are some of the best cash-back credit cards for diesel fuel purchases:
The Bank of America® Customized Cash Rewards credit card is a great option for those seeking a $0 annual fee card with a tiered cash-back system. Cardholders can earn 6% cash back in the first year in a category of their choice, including gas and EV charging stations. After the first year, the cash-back rate for these purchases drops to 3%. Additionally, the card offers 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases.
The Discover it® Cash Back card is another excellent choice, offering 5% cash back in rotating categories that you activate, including gas stations, grocery stores, and restaurants. The 5% cash back is applicable on up to $1,500 in spending per quarter, and 1% cash back is earned on other purchases. Discover also offers a unique cash-back match bonus, doubling all the cash back you've earned at the end of your first year.
For those who shop at Costco, the Costco Anywhere Visa® Card by Citi is a great option. This card offers an impressive 5% cash back at Costco gas stations and 4% on other gas and EV stations, on up to $7,000 in combined spending annually. After that threshold, you'll earn 1% back. The card also provides 3% back at restaurants and 2% on purchases from Costco and Costco.com.
The Blue Cash Everyday® Card from American Express is another strong contender, earning 3% cash back on up to $6,000 spent annually in three categories: U.S. gas stations, U.S. supermarkets, and U.S. online retail purchases. All other spending earns 1% cash back, and the card boasts a $0 annual fee.
Lastly, the Exxon Mobil Smart Card+™ is a gas credit card that provides instant savings on fuel purchases. Cardholders save 12¢/gal* on Synergy Supreme+™ premium gasoline and 10¢/gal* on other fuel-grade purchases, including diesel. Additionally, cardholders receive 5% back in rebates on their first $1,200 in Exxon and Mobil non-fuel purchases each year.
By utilizing these cash-back credit cards, you can maximize your rewards and save money on diesel fuel purchases in California.
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Average diesel price in California
As of June 20, 2025, the average diesel price in California is $4.760 per gallon, making it the state with the highest fuel prices in the US, along with Hawaii. Mississippi and Louisiana, on the other hand, offer the cheapest fuel prices.
Fuel prices have been steadily declining each year since 2022, which can be attributed to slowing demand. Despite this downward trend, the Energy Information Administration (EIA) predicts that global liquid fuel consumption will increase by 1.3 million barrels per day in 2025, although this is still below the average annual oil demand growth from 2021 to 2023.
In its recent "Short-Term Energy Outlook," the EIA projected that Brent crude oil spot prices would average $74 per barrel in 2025, a decrease from the 2024 average of $80. This decrease is part of a broader pattern of lower prices since 2023.
To save money on fuel, drivers can take advantage of rewards programs offered by grocery chains, such as Kroger's Fuel Points program, where members earn 1 Fuel Point for every $1 spent in Kroger supermarkets. These points can then be redeemed for discounts at Kroger gas stations or other partner fuel stations. Additionally, using cash-back credit cards for fuel purchases can provide significant savings, especially when combined with full monthly credit card payments to avoid interest charges.
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Most expensive state for diesel
As of June 2025, the average price of diesel fuel in California is $4.760 per gallon. While this is high, it is not the most expensive US state for diesel. As of November 2022, California had the highest average diesel price of any state at $6.28 per gallon. The next most expensive states for diesel were Pennsylvania and Vermont, where prices averaged $6.16 per gallon.
The high cost of diesel in California is due in part to the state's high fuel taxes, which are among the highest in the country. California's diesel prices are also affected by the state's unique blend of diesel fuel, which is designed to reduce emissions and improve air quality. This blend is more expensive to produce and refine than traditional diesel, which contributes to the higher cost at the pump.
In addition, the cost of diesel fuel in California can be impacted by a variety of factors, including the price of crude oil, the supply and demand for diesel fuel, and the cost of refining and distributing the fuel. California is home to some of the nation's busiest ports, which can drive up demand for diesel as it is used to transport goods by truck.
While California has had the highest diesel prices in the past, the state is not always the most expensive for this fuel. As of October 2022, only California, Hawaii, and Pennsylvania were in the top ten most expensive states for diesel. The cost of diesel can fluctuate, and states can quickly move up or down the rankings.
California's high diesel prices can have a significant impact on the state's economy and the cost of living. When diesel prices are high, the prices of goods like groceries, household items, and clothing also tend to increase as these products are often transported to stores and warehouses using diesel-powered vehicles. As a result, high diesel prices can contribute to inflation and affect the budgets of California residents.
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Cheapest states for diesel
As of 2022, California has one of the highest fuel and diesel fuel prices in the United States. The high fuel prices in the Golden State are attributed to high gas taxes, greenhouse gas emission regulations, and inadequate crude oil reserves. The current average diesel price in California is $6.28, while the AAA California average is $4.76. In comparison, several states offer much lower diesel prices. For example, Texas has a diesel price of $4.69, Louisiana at $4.84, and Oklahoma at $4.85. These states also tend to have lower average prices for gasoline.
Other states with relatively low diesel prices include Mississippi ($4.86), Arkansas ($4.90), and Kansas ($4.94). New Mexico ($4.95) and Georgia ($4.97) also offer competitive diesel prices, with only a slight difference in cost. Missouri and Alabama have diesel prices of $4.99 and $5.00, respectively, rounding off the list of states with the lowest diesel fuel prices.
While these states generally have lower diesel prices, it is important to remember that fuel prices fluctuate daily. Various factors, such as taxes, emission regulations, and crude oil reserves, contribute to the variability in fuel prices across different states. As a result, the relative differences in average prices among the states tend to remain consistent, even if the current average prices may differ.
Trucks and airplanes, which play a significant role in transporting goods, primarily use diesel fuel. Consequently, changes in diesel prices can impact the prices of many other products. When diesel prices increase, consumers may notice a rise in the cost of groceries, household items, and clothing. This trickle-down effect highlights the far-reaching consequences of diesel prices on the overall economy and consumers' purchasing power.
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Frequently asked questions
The average price of diesel fuel in California is $4.760.
California has one of the highest prices for diesel fuel in the US, with only Hawaii being more expensive.
Diesel prices have been steadily falling each year since 2022 due to slowing demand.
