Just paid $2.47 in San Francisco. I agree with Larry that this is supply and demand at work. Two factors limit supply, one is OPEC and crude production, the other is refining capacity. A number of states, not just California, have special specs for gas and diesel and only certain refineries make it. This keeps refineries that have excess capacity of the "wrong" brew of fuel from producing extra to satisfy demand where supplies are tight. Refineries are "tuned" to make a specific brew and can't just turn a switch to adjust formulations. This creates tighter than average markets in certain states like California and drives their prices up. I don't think the refining eco limits are a factor as much as the inability to move product from one market to another. There's no conspirancy here, just a bunch of inflexible regulations. In the meantime the guys like Chevron that own the refineries producing at full tilt and selling into high demand are minting money.

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LRG
1987 300D Turbo 175K
2006 Toyota Prius, efficent but no soul
1985 300 TDT(130K miles of trouble free motoring)now sold