California gas most expensive in the country. Merced gas more expensive than most

California briefly held the highest-average price for a gallon of fuel in the country, AAA reported Wednesday.

At $3.05 a gallon, California took the dubious distinction as the state with the highest prices for fuel, which is most often held by Hawaii. Merced’s prices remain above the national average of $2.33 a gallon.

The cheapest gas in Merced was recorded at $2.69 a gallon at Costco, followed by $2.73 at the Arco station on G Street and Olive Avenue, according to Gasbuddy.com. In Turlock, Costco and Arco tied for the cheapest gas on Wednesday at $2.65.

Modesto ($2.94) and Fresno ($3.09) saw averages this week that were 13 cents and 17 cents higher than a month ago, respectively.

The average price in the state has fallen by a cent since Monday, AAA reported. California and Hawaii are the only two states where fuel tops $3 a gallon.

Californians were paying $2.86 at the pump a year ago, AAA said.

Prices are expected to remain high because demand is high on this side of the country, according to Mike Blasky, spokesman for AAA Northern California.

“California is leading the nation in gas prices again because demand for gasoline on the West Coast is still very high, due to the region’s strong economy, and people are willing to spend their money on travel,” Blasky said.

The state average is driven up by prices in Northern California, where it’s $3.09 per gallon, and the Bay Area, where it averages $3.14, AAA reported.

Drivers in California pay more partly because of stiffer fuel-blend standards to meet the state’s unique air-quality rules, according to experts.

The West Coast is paying the highest gas prices in the country because it’s the only region seeing year-to-year growth in gasoline demand, AAA said Wednesday.

California drivers may see a minor increase at the pump next month as the state raises its excise tax rate for gasoline by 1.9 cents per gallon, AAA noted.

This story was originally published June 14, 2017 at 5:10 PM with the headline "California gas most expensive in the country. Merced gas more expensive than most."