The average price for a gallon of gas in California rose to $6 this week, marking the highest level in nearly four years as fuel prices across the United States continue to climb. According to the American Automobile Association (AAA), California consumers were paying an average of $6.06 per gallon as of Friday, while the national average reached $4.39. The Golden State remains the most expensive market for gasoline in the country, but costs have risen nationally as well, with a 27-cent increase this week following two weeks of declining prices, AAA reported.
Impact of the US War on Iran
The price surge is the highest since the onset of the US military conflict with Iran, which has significantly disrupted global oil markets and driven up gasoline prices worldwide. Patrick De Haan, head of petroleum analysis at GasBuddy, stated on Thursday that Americans have paid an additional $21.7 billion to fill their gas tanks since March 1. Nationwide, gas prices have risen approximately 44% since late February.
California's strict emissions standards, high taxes, and reliance on imported petroleum mean its residents already pay more for gas than anywhere else in the US. The state's fuel stockpiles hit record lows in April, and gasoline imports dropped sharply. Denton Cinquegrana, chief oil analyst at Dow Jones Energy, noted, “California is arguably the state most impacted by the Strait of Hormuz in the United States, which has been largely insulated from the events.”
Political Reactions
With prices rising across the country, California Governor Gavin Newsom has been critical of President Donald Trump. “Every American who fills up their tank this week, buys groceries or books a flight is paying Donald Trump’s Iran war tax,” Newsom said in a press release on Thursday. In response, Trump told a crowd of supporters at The Villages retirement community in Florida on Friday that gas prices would soon “come tumbling down.” He added, “It’s gonna come down lower than it was.”
Miguel Angel Cruz, a landscaping business owner who relies on driving for work, told Reuters that filling his truck used to cost $50 but now runs $80. “I cannot drive any less,” Cruz said. “Every time we get a new president in the White House, they say this year is gonna be better. But nothing’s changed. It’s the same story, except now it’s worse because of the war in Iran.”
Consumer Behavior and Route 66 Anniversary
A recent survey found that people are planning fewer vacations over the next six months, and far fewer intend to drive to their destinations. Meanwhile, the US is celebrating the 100th anniversary of Route 66, which stretches across eight states from Chicago to Los Angeles, with a series of events. According to an AAA survey, about 41% of Americans planned to visit some portion of the route during this year’s celebration.
