California gas prices had dipped slightly in recent weeks, after a slow but steady rise following the outbreak of war with Iran in late February.
Now they have resumed their upward march — and are nearing the milestone of $6 per gallon, according to the AAA.
Statewide, average gas prices stood at $5.95 per gallon on Monday, about 11 cents above where they were a week ago, AAA said.
That’s still well off the record of $6.44 per gallon in June 2022 — a price spike propelled by Russia’s invasion of Ukraine.
California has the highest gas prices in the nation by far, about 30 cents per gallon above isolated Hawaii. And some cities, including San Francisco, are already seeing prices that exceed $6 per gallon.
Diesel prices are also near record highs, at $7.48 per gallon. And the state’s jet fuel stocks have dropped sharply this month.
California produces oil from fields near Bakersfield, but its fuel supply is nonetheless somewhat cut off from the rest of the nation, which is one reason for its highest-than-the-nation prices. No pipelines bring oil products into the state. Environmental taxes and fees are another factor.
Longer-term, officials are also keeping their eye on the dwindling of refinery numbers in the state. Because California uses a special fuel blend to reduce pollution, most gasoline is refined in-state. Having fewer refineries therefore makes the state more vulnerable to price shocks when problems occur at refineries.
The continued throttling of the Strait of Hormuz in the Middle East, where a fifth of the world’s oil travels, has likely caused the recent rise in gas prices. Iran is keeping most ships out of the strait, and the U.S. Navy is blockading Iranian ports. On Sunday Iran sent Pakistan, which has been mediating negotiations, a plan that would prioritize the reopening of the strait while delaying thorny discussions over Iran’s nuclear situation, according to the New York Times.
Experts believe that gas prices will stay high for a while, even if peace endures and the strait is reopened.