As California gas prices surge, experts warn this spike is different
New York Post • • business
Key Points:
- California gas prices have surged again, with Los Angeles County seeing a 10-day consecutive rise, reaching an average of $5.645 per gallon, marking a 24-cent increase over the past 10 days and $1.165 higher than a year ago.
- The state's average gas price now stands at $5.59 per gallon, the highest in the nation, impacted by global fuel supply pressures including refinery capacity limits and geopolitical conflicts disrupting key shipping routes.
- US refineries are operating near full capacity, with some regions at 100%, while emergency oil reserves have been heavily drawn down to cushion supply shocks, leaving little buffer for further disruptions.
- Geopolitical tensions, including the closure of the Strait of Hormuz, threats to Saudi export routes, Ukrainian strikes on Russian refineries, and Russia's diesel export ban, are intensifying global fuel supply constraints.
- California's already elevated gas prices are exacerbated by state taxes and environmental regulations, creating a structural premium that makes the impact of global supply issues more severe for local motorists.
