Energy

Gas Prices Rise to $4 in California

Douglas A. McIntyre

Published: March 29, 2016 11:50 am

Last Updated: January 13, 2020 11:24 am

Gasoline prices, based on the average price for a gallon of regular nationwide, have reached $2.04, up from $1.75 a month ago. In some areas of the United States, that number is much, much higher. As a matter of fact, in some areas in California, the price of gas has gone above $4, and in a number of others it has risen to $3.99, according to GasBuddy.

With the exception of three gas stations around Orlando, Fla., the Los Angeles area has the concentration of highest prices. One station in South San Francisco sells regular gas for $5.03. Eight stations in the area sell gas for over $4 a gallon. A cluster of other stations nearby have gas prices that run from $3.99 to $3.79. Of the 50 stations in the United States with the highest priced gas, 42 are in California.

It is not surprising that some parts of California have such high gas prices. The average price across the state is $2.79, according to GasBuddy. Hawaii is a distant second at $2.57 a gallon. By contrast, the state with the lowest price average per gallon of regular is Oklahoma at $1.83.

The national average will go higher, and perhaps much higher. Crude oil prices have risen to $40. Three months ago, the price was nearly $30 a barrel. The perception that crude sold off much too quickly is among the reasons for the rise. While Saudi Arabia continues to pump oil with impunity, most other OPEC members have been more conservative as the drop has hurt their national economies. Demand is less certain. The Chinese economy has slowed but is still robust, with its gross domestic product rising by nearly 7%. It remains the largest oil importing country in the world.

Oil inventory is not the only factor. Proximity to refineries is also an issue. The average gas price in Louisiana is $1.86. In Oklahoma it is $1.83 and in Texas $1.89. All are near the huge refineries south of Houston and on the Gulf of Mexico, which itself is dotted by deepwater oil drilling platforms.

Gasoline taxes by state are another factor. The average nationwide is $0.48 per gallon, according to the American Petroleum Institute. In Oklahoma it is $0.35. California has the fifth highest gas tax in the United States at $0.59 a gallon, which is another reason gas prices are so high across the state. Residents of California face gas prices at the high end of the national average, if only for that reason.