Energy
Gas Prices Above $3.50 in Major California Cities

Published:
Last Updated:
The price of a gallon of regular gasoline has risen above $3.50 in every major city in California. It is a harbinger of things to come if oil prices spike above $75. It also may be a measure of how much gas prices can affect the consumer economy.
The average national price of a regular gallon of gas is $2.81, so the prices in some California cities are 30% higher.
California’s three largest cities all have gas prices above $3.60. The price is $3.64 a gallon in San Diego, $3.65 in Los Angeles and $3.71 in San Francisco. Most other areas close to these cities along the West Coast have prices nearly as high. In Santa Barbara, the price is $3.70 and in San Jose it is $3.64. In Orange County, near Los Angeles, the price is $3.62. In total, the price of gas is above $3.50 in 12 large California cities, which make up a majority of the state’s population.
Among the reasons the gas prices in these cities are so high is the gas tax in California is among the highest in the nation at $0.467 a gallon. The state also mandates a level of gas standards for “clear gas,” which is the highest standard among all states.
Regardless of the reason California gas prices are high, they may reach a level at which they undermine consumer spending. This could become worse because a number of experts believe the price in the state will top $4 during the heavy driving season in the summer.
High gas taxes obviously harm the lower and middle-class groups hardest. Gas price increases can add hundreds of dollars to household costs, particularly for people who have to drive long distances to work. These hundreds of dollars, added to the base costs of housing, food and clothing, undermine discretionary spending and virtually kill these households as contributors to gross domestic product beyond their purchase of basic daily needs.
California could be the “canary in a coal mine” for how higher gas prices hit gross domestic product. If the past is any indicator, the damage will be substantial.
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.