Why is the state with the largest oil reserves have the highest gasoline prices?

Why is the state with the largest oil reserves have the highest gasoline prices? First it’s the taxes. Second it’s the lack of drilling off shore where they have a goldmine of reserves. And of  course horizontal drilling (fracking ) is mostly non existent.

The national average for a gallon of gas waffled up and down over the past week before settling higher by two cents at $3.67.  The slight increase in pump prices happened despite a lull in domestic gasoline demand and falling oil prices.

“From a demand perspective, we have entered the pre-Memorial Day funk,” said Andrew Gross, AAA spokesperson. “And the cost of a barrel of oil is nearly $10 less than two weeks ago, as oil prices have fallen into the upper $70s. This may keep pump prices somewhat flat for the immediate future.”

According to new data from the Energy Information Administration (EIA), gas demand rose slightly from 8.42 million b/d to 8.62 last week. Meanwhile, total domestic gasoline stocks increased by .4 million bbl to 227.1 million bbl.  Tepid demand, increasing supply, and falling oil prices could lower pump prices.

Today’s national average is $3.67, 14 cents more than a month ago and 8 cents more than a year ago. Below is California as of May 3rd. I paid $3.09 yesterday here in Ohio.