Gas prices can vary substantially from state-to-state and this has a lot to do with demand. In less populated regions of the U.S. it is not surprising to find cheaper gas. This is true within cities as well, try driving from South Central Los Angeles to Beverly Hills and you will find gas prices increase the closer you get to the prime location of Beverly Hills.
California has redone gasoline that meets stricter guidelines than those required by clean-gas laws. This provision makes gas in California burn cleaner but can also mean a higher price at the pump due to the additional processing required.
The Midwest saw gas prices far above the national average as they required ethanol-blended gas before the rest of the country. Since this special blend of gas was not as readily available it was quite possible that demand could exceed supply and thus pricing was higher in the middle of the country. While this became a national standard in 2007 it is factors like this that can produce varying gas prices from state to state.
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One of the main reasons that gas prices increase as you drive closer to Beverly Hills (using your example) is that the gas stations know that the people in those areas have a higher income so therefore they will be willing to pay a higher price to fill up their Porsche's and Bentley's. Another thing that affects gas prices is the distance that it has to travel. Places that are near ports tend to have lower gas prices because the oil companies do not have to spend as much money on trucking the gas to that location. Hopefully gas prices will not return to the highs that are portrayed in your picture.
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