Oct 10, 2014
I looked at http://www.riversidegsprices.com (the site I was on when I lived in California) and http://www.riversidegsprices.com for New Jersey.
There were 6 stations in Riverside County, California (about 60 miles East of LA) at $3.29 vs 1 station in Carteret at $2.69 (CASH) and 1 in Newark at $2.69 and, according to GasBuddy, California average price is $3.646 while New Jersey averages $3.072, still a $0.57 difference.
I will certainly grant you that the highs will come near LA or San Francisco and be closer to $4, but those represent specific cases, not averages
Locally, we are down under $3, but our supply and transport system won't have us dipping much lower. New Jersey is real compact, whereas Tennessee, and especially California are really spread out, so transport and special blending requirements play a huge role in the pump price