Sanctions on Russian oil are squeezing California particularly hard and could lead to $7 gas

• US gas prices are higher than ever, with California leading the nation at $5.69 per gallon.
• The Golden State does have higher taxes and cleaner refining standards, but that's not all.

California is known for many things: sunshine, fine wine, and shockingly expensive gas.

The two primary reasons for these highest-in-the-nation fuel prices are taxes and refining standards.

Excise and sales taxes add about 60 cents to the cost of a gallon, while other environmental fees bring that California premium up to more than a dollar over the national average for gas.

California also requires a much cleaner refining standard for motor fuels in an effort to curb the historic air pollution in the state, which drives costs up and reduces the number of out-of-state refineries who can deliver to its specifications.

But a third reason is giving California drivers an extra pinch in recent days.

Western states are the largest buyers of Russian crude oil, which was tapering off before it was ultimately sanctioned on Tuesday by the Biden administration in response to Russia's invasion of Ukraine.

Roughly half of the 199,000 barrels of Russian crude imported daily by the US ends up at refineries primarily in California, Washington, and Hawaii, energy consultant Andrew Lipow told the LA Times.

"I know that California's gasoline is so expensive compared to the rest of the nation," he said. "Unfortunately, I have bad news: The average there is going to go up by at least another 25 cents a gallon."

As of Thursday afternoon, the state average for a gallon of regular was up to $5.69, according to GasBuddy, $1.36 higher than the record high national average of $4.33. Some California counties were even showing prices over $6.

Analysts have predicted the number could top $7 in the state before it starts to come back down, the LA Times reported.

The speed of the rising prices is adding a further shock, causing many drivers to rush to discount warehouse fuel clubs like Costco and Sam's Club to take advantage of wholesale pricing.

Shopper Pam Rubitsky told Insider's Mary Hanbury that she arrived at Sam's Club in Citrus Heights, California, at 5.50 a.m. local time Thursday to fill up for $4.92 per gallon, compared with $5.89 at the nearby Chevron station.

At least five cars were waiting for each of the 10 pumps available, she said, and by the time she left, the lines were even longer.