California gas prices could get more expensive

Key Points:

• California drivers are facing the highest gas prices in the U.S., averaging $6.15 a gallon amid the Iran war and global energy shock, with stable supplies expected only through mid-June before potential price increases.
• The state is increasingly reliant on imports to fill gaps left by refinery closures, sourcing crude and gasoline from Latin America, Alaska, and Canada, while experts emphasize the need to expand port and storage capacity rather than reopen refineries.
• The oil industry criticizes California’s reliance on imports, attributing supply vulnerabilities to stringent state policies and fuel standards that complicate sourcing and increase volatility, arguing that imports may pose greater risks.
• Experts disagree on future prices: some forecast prices stabilizing under $7 per gallon, while others warn that prolonged disruptions, such as closure of the Strait of Hormuz, could push prices significantly higher, potentially triggering a crisis.
• High gas prices may be encouraging some consumers to switch to electric vehicles, with California considering new incentives to boost EV sales, although nationwide inventory shortages and previous federal tax credit expirations have complicated the market.