California drivers are bracing for a summer increase in gasoline prices, driven by escalating tensions between the United States and Iran that are fueling concerns about global oil supplies. Fuel experts indicate that renewed conflict following a brief ceasefire has disrupted traffic through the Strait of Hormuz, a critical global oil transit route, pushing crude oil prices into the $90 per barrel range. This volatility, coupled with reduced Russian refining capacity due to Ukrainian drone strikes and a Russian ban on diesel exports, is further restraining global oil availability.
The average price for a gallon of regular gas in California has risen by 10 cents over the past week, reaching $5.64 as of Wednesday, according to the American Automobile Association (AAA). Experts warn that the global supply system has little resilience to further disruptions, suggesting these factors could continue to drive up costs through the second half of summer.
California's elevated gas prices are also attributed to a structural "California premium," resulting from the state's taxes and environmental regulations. This premium typically keeps pump prices more than $1.50 per gallon above the national average, amplifying the impact of any global supply disruptions for state motorists.
Drivers in certain rural areas are currently experiencing the most significant price spikes. As of Wednesday, Mono County reported the highest average gas price at $6.83 per gallon. Other counties with high prices include Inyo at $6.14, Sierra at $6.10, San Luis Obispo at $5.92, and Humboldt at $5.90.
In contrast, the counties with the lowest reported gas prices include Sutter at $5.30 per gallon, Tehama at $5.38, Yuba at $5.38, and Butte at $5.45.
Major metropolitan areas are also seeing price increases, with Northern California generally experiencing higher costs than Southern California. San Francisco's average gas price is $5.83 per gallon, an increase of nearly 20 cents from the previous month. In Los Angeles, drivers are paying an average of $5.70 per gallon, a 24-cent jump from last month.