Gas prices are higher than ever, and there seems to be no end in sight.
The average price paid for a gallon of regular gasoline in California reached a record high of $4,742 on Tuesday, according to the American Automobile Association. That figure is the highest in the country and is more than a dollar above the national average, which currently stands at $3,531 a gallon.
For context, today’s cost of $4,742 is three cents higher than last week’s average and 10 cents higher than last month’s average. A year ago today gas prices hovered around $3,573 per gallon in the state.
Now, some forecasters expect the average price to top $5 a gallon very soon.
One of the main reasons for the national increase in gasoline prices is the military conflict between Russia and Ukraine. Russia is the world’s third-largest producer of oil and crude oil, according to 2020 data from the US Energy Information Administration.
As the country escalates into armed conflict, some fear it could disrupt oil exports following US and European sanctions.
If that happens, European countries may be forced to turn to petroleum-derived fuels to replace natural gas. That higher demand for oil could push gasoline prices up an additional 10%, said Shon Hiatt, an associate professor of management and organization at the USC Marshall School of Management.
“The geopolitical risks are very high,” he explained. “We will have to see how things develop.”
California does not import oil from Russia. According to the California Energy Commission, the state brought in 25% of its oil from Ecuador and Saudi Arabia, while another 20% came from Iraq.
Still, the absence of a major exporter like Russia would increase global demand for oil from other countries, which could affect the retail price in California.
“Foreign oil represents an increasing percentage of our sources,” said Marie Montgomery, a spokeswoman for AAA. “Alaska oil has been down and overall California production has also been down.”
At about $91.55 per barrel, the average price of crude oil remains well below the all-time high of $147.27 set in July 2008. That month, the average price of gasoline in California was $4.48, one cent less than the record set. just a month earlier in June.
In a speech Tuesday announcing sanctions against Russia, President Biden said the White House would work to keep gasoline prices from skyrocketing. But, he explained, Americans must be “honest” about the necessary sacrifices ahead.
“As we respond, my administration is using every tool at our disposal to protect American businesses and consumers from rising prices at gas stations,” he said. “As I said last week, defending freedom will also come at a cost to us here at home. We have to be honest about it.”
Whatever happens in Eastern Europe, a unique set of factors will likely keep California prices significantly higher than the national average.
The state maintains its own standards regarding the formulation of gasoline sold in the entity, rules that aim to reduce pollution. Cleaner gasoline is more expensive to produce and few out-of-state refineries can make it. There are also no interstate pipelines that bring gasoline to California, which means all imports must arrive by ship or truck, which are more expensive.
The spike in fuel prices comes as Californians start planning their spring break. Road trips have become increasingly popular travel options since the start of the COVID-19 pandemic, but rising gas prices may tip the scales toward air travel or vacations at home.
A recent study by Outdoorsy, an RV rental site, found that the number of long-distance road trips, defined as trips between 100 and 500 miles taken in a personal vehicle, averaged about 72 million in the past two years. That’s more than 60 million per week in 2019, according to data from the US Bureau of Transportation Statistics.
Montgomery added that it was too early to tell whether travelers would cancel their vacations because of rising prices, or perhaps change their plans.
“The good thing about road trips is that they are flexible on a budget,” he said. “You can spend one day less, take food instead of eating out. There are many things that can be done to compensate for gasoline, we have seen it in the past.
Even drivers just across town feel the pressure at the gas pump. Some motorists detailed that they have no choice but to pay the higher prices, while others comment that they drive less to reduce the burden on their pocket.
Monica Simion described gas prices as “crazy” as she put $60 worth of gas in her car at an Arco station in Monrovia, where a gallon of premium gas was selling for $4.89.
“It’s not enough that we have a pandemic, now we have these crazy gas prices,” he stressed, adding that he has tried to organize more carpools with family and friends to save gas.
Craig Robertson, who lives in Bradbury Estates but operates two dry-cleaning businesses in the Financial District of downtown Los Angeles, said he recently started taking Metro Rail to his businesses to save gas. “I had never seen such high prices,” he said as he filled his tank at the Arco station.
Josh Skinner, who lives in Monrovia but drives to his AT&T job in Orange County, said he has no choice but to pay higher gas prices for his commute. “I really don’t have a choice,” he said. “I have to do what I have to do.”
Times staff writer Anumita Kaur contributed to this article.
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