By Madeline Shannon

A “mystery surcharge” at the pump costs Californians millions of dollars a year, according to a new report from the state Division of Petroleum Market Oversight.

It’s part of the debate over reasons for the nation’s highest gas prices, which for years have been in California. The report points to oil companies as the cause of the surcharge, but critics of the report blame overregulation, taxes and refinery closures for price hikes.

The backstory: Between 2015 and 2024, drivers in the Golden State paid what the report called a mystery surcharge at the pump that averages 41 cents per gallon, costing Californians $59 billion. This is an extra cost that isn’t accounted for by taxes, fees or the cost added at the pump for state-run environmental programs, the report says.

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