Is California at risk of a gasoline shortage amid the Iran war? Experts explain
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Key Points:
- California's average gasoline price is $6.13 per gallon, 36% higher than the national average, driven by the Iran war's impact on global oil supply and the state's reliance on foreign imports.
- Officials say California has enough gasoline supply for the next six weeks, but warn that prices could rise further if the situation persists beyond that period.
- The state's vulnerability is worsened by recent refinery shutdowns and limited pipeline infrastructure, restricting its ability to increase in-state production or access domestic supplies.
- Despite supply constraints, analysts predict high prices will reduce demand ("demand destruction"), preventing actual shortages or long lines at gas stations.
- The closure of the Strait of Hormuz and disruptions in Asian fuel imports have contributed to soaring crude prices and supply chain strains, affecting California more than other states due to its unique energy market structure.
