California gas prices rise above $5 a gallon amid US war with Iran | California
According to data from the American Automobile Association (AAA), the war in Iran has caused an increase in gasoline prices, which has had a particularly negative impact on California consumers.
AAA reports He said the average price per gallon on Monday in California, the most expensive gas market in the U.S., was $5.20, while nationwide it was $3.47. The national average is up about $0.50 since the fighting began more than a week ago, while it’s up $0.55 in the Golden State.
The price of oil rose above $100 per barrel for the first time in nearly four years after the United States and Israel attacked Iran on February 28, leading to an increase in violence in the Middle East. The conflict damaged oil and gas facilities and stranded ships carrying nearly 20 million barrels of oil a day in the Gulf.
About 20% of the world’s oil moves through the Strait of Hormuz every day, but the canal was essentially closed last week.
Claudio Galimberti, chief economist at Rystad Energy, said 9 million barrels of oil per day are currently being taken off the market due to attacks on facilities or producers taking precautionary measures.
“We are facing an extreme budget deficit situation right now with all of these being closed,” he said.
Prices were already expected to rise at this time of year as demand increases and summer blended gasoline production increases. However, the conflicts led to sharper increases in fuel prices. A Chevron was $8.21 a gallon in Los Angeles, ABC7 reported.
“I use Uber and I’m getting killed right now and I mean gas prices are so high… they were high before the war,” one driver said.
Donald Trump dismissed concerns about the increase, arguing that prices would “come down very quickly” once the conflict was over; The administration insisted that the increases would last weeks rather than months.
White House press secretary Karoline Leavitt called the increase in prices “a short-term disruption to the long-term gain of eliminating the rogue Iranian terrorist regime and finally ending restrictions on the free flow of energy through the Strait of Hormuz.”
Californians pay more for gas than any other state in the U.S. due to taxes, environmental regulations and a sharp decline in refinery capacity. But Gavin Newsom’s office said the blame for that increase lies solely with the president.
“Average gasoline prices in California have remained below $5 for nearly two years so far,” the governor’s office said in a statement on social media. “This is because of Trump’s war with Iran.”
Associated Press contributed reporting
