California Surpass Gas Price Record

California Surpass Gas Price Record

As per AAA, California gas prices averaged $4.676 on Sunday, breaking the previous record of $4.671 for regular fuel established in October 2012.

On Friday, it came within a cent of breaking the record, and on Saturday, it was tied for it. Gas prices in America’s most populous state are the highest in the country. On Sunday, the national average fell to $3.413.

According to AAA, significant rainstorms in Northern California have slashed production capacity, which has then spread to Southern California, much like Hurricane Ida did in Louisiana.

“Right now, there’s a bit of a supply bottleneck, but nothing serious,” Jeffrey Spring, Corporate Communications Manager of the Automobile Club of Southern California told newsmen.

In other locations, such as Northern California’s Humboldt County, where the average price was $4.968 on Sunday, prices are approaching $5. The price of a gallon of gas in the Bay Area has risen to more than $4.80.

According to Doug Shupe, a spokeswoman for AAA, while Californians are used to paying more for gas, the price has recently risen significantly. She further explained that the chief causes of the price increase are increasing crude oil prices and pent-up demand from the pandemic.

As global fuel demand grows and oil producers lack the means — or are unwilling — to supply more oil, gas prices have been steadily rising year-round. Despite a 65 percent increase in oil prices this year, US oil production is around 14 percent lower than it was at the end of 2019 when Covid erupted.

Gas prices have risen to seven-year highs, and Wall Street banks are predicting oil costs of $100 or even $120 per barrel.  Following refinery issues that prompted prices to soar for a few weeks before dropping, California set a new high in 2012.

The Author

Oladotun Olayemi

Dotun is a financial enthusiast who specializes in first-in-class financial content, including crypto, blockchain, market, and business, to educate and inform readers.