California’s average gas price topped $6 a gallon for the first timeTuesday, just two months after drivers were stunned to see $5 prices at the pump for the first time. And there is no sign of a decline anytime soon.
In San Jose, prices on Tuesday averaged $6.12, Oakland hit $6.13, and San Francisco and Marin counties were tied for most expensive in the region at $6.27, according to AAA. The state average jumped 30 cents in the last month — and a staggering $1.36 since the start of the year — as Russia’s invasion of Ukraine combined with surging inflation and increased fuel demand to spike gasoline prices.
On Tuesday, all 50states crossed the $4-per-gallon mark for the first time.
“Even the annual seasonal demand dip for gasoline during the lull between spring break and Memorial Day, which would normally help lower prices, is having no effect this year,” said Andrew Gross, a spokesperson for AAA, who blamed global oil costs, now over $114 a barrel, for “driving these high pump prices for consumers.”
For a commuter driving round-trip from downtown San Jose to San Francisco, the surging fuel price translates to burning $20 of gas in a vehicle averaging 30 mpg. That’s a $5 hike versus January 2022 and almost double the cost from January 2021.
The progressively painful visits to the gas station come as 70% of Americans now say inflation is the top problem facing the United States, beating health care affordability, violent crime and COVID-19, according to a Pew Research Center survey released last week. Nationwide, the annual inflation rate reached 8.3% in April, a pace nearing a 40-year high.
Athena Bonneau, an Indigenous Canadian journalist road-tripping through California, has watched gas prices steadily climb as she traveled through the Pacific Northwest and into the Bay Area.
“It started at $4 and went to $5 and now here,” said Bonneau, who paid $6.69 a gallon on Tuesday at a Valero in Berkeley. “It’s the highest I’ve ever seen it.”
Drivers feeling the pinch may be wondering if Sacramento is still planning on sending gas tax financial relief after a flurry of proposals in March. The answer is yes, Californians can expect hundreds of dollars back this year, but it likely won’t come in time for your summer road trip as budget negotiations between the governor and Democratic leadership drag on.
California has long paid the highest fuel prices in the country, a sting that is particularly felt now that the average price per gallon is $1.50 higher than the national average.
Among the reasons for the state’s highest-in-nation status is a 51-cent gas tax — only Pennsylvania levies a higher gas tax — along with environmental fees to fight climate change and a more costly pollution-fighting fuel blend unique to the Golden State.
The entire country is also in the midst of a switch from winter to higher-priced summer fuel blends by early June. These blends are meant to prevent gasoline evaporation and smog during warmer months and typically add 7 to 10 cents per gallon, according to AAA.
Still, there has also been an upward of 30-cent difference between California and the national average that analysts can’t seem to account for, with fingers pointing to profit-taking by large gas station companies.
The oil industry has reaped massive rewards as Russia’s invasion of Ukraine spiked fuel costs and gas demand has rebounded after COVID-19 restrictions loosened.
Saudi Aramco, which recently overtook Apple as the world’s most valuable company, said Sunday its profits soared more than 80% in the first three months of the year, as the state-backed company cashes in on the volatility in global energy markets and surging oil prices. California imports over 16% of its oil from Saudi Arabia.
Meanwhile, London-based Shell reported $9.1 billion in adjusted earnings earlier this month, a $3.2 billion increase from the same period last year.
The Associated Press contributed to this report.