Why is gas higher in different areas of US?

Our gas around here is about $3.40 for regular. I have read that it is well over $4 in San Francisco. Is this because of the high taxes and octane requirements there? You people that live there should be in full revolt: eliminate all gas taxes, ethanol (messes up engines) requirements, and all of these pollution controls such as the disastrous catalytic converter that use more gas and really don't help pollution. Gas could easily be $2 a gallon everywhere - this country has a huge surplus of gas supplies.