The ongoing Iran war is driving gas prices up across the U.S., including East San Jose — where residents and small business owners are carefully weighing where to fill up.
Prices observed at local gas stations along Alum Rock Road ranged from as low as $4.09 per gallon up to $5.17 for regular unleaded fuel, depending on the location. National officials have said the conflict, initiated by the U.S and Israel on Feb. 28, is expected to continue for at least several weeks. That means locals will be paying more at the pump for the foreseeable future.
For residents and business owners, the combination of local pricing, weekly routines and global events has made fuel costs an inescapable part of life in East San Jose.
Residents such as Javier Benavides have seen prices spike from day to day. Benavides, who has lived in East San Jose since 1978, fills multiple vehicles each week, including a Chevy truck and Toyota Tundra. Retired but active in the community, he said he drives to stay busy and exercise.
“One day it was $4.02, and the next day $4.25,” Benavides told San José Spotlight. “When gas goes down, it drops very slowly. They just make a killing off the people.”
Gas prices for regular unleaded fuel in East San Jose range from as low as $4.09 per gallon up to $5.17 depending on the location. Photo by Maryanne Casas-Perez.
Construction worker Will Muheller, 27, said he drives between Fremont and Salinas for work and is spending $150 weekly on his 30-gallon truck, up from $125 previously. Besides the war with Iran, he said gas prices might increasing because of tensions with China and Russia too.
“I think that’s mainly like China and Russia getting imports from like oil and stuff, so I don’t necessarily know,” Muheller told San José Spotlight.
He also mentioned potential policies, like a new California mileage tax, which could raise costs further.
“I’m hoping that gas prices (are) going to drop down, but I know that (Gov. Gavin) Newsom was talking about some kind of tax for mileage,” he said.
California lawmakers have advanced a bill to study whether the state should eventually replace its current gas tax with a “road usage charge” that would base fees on how many miles a driver travels rather than how much fuel they buy. The current proposal does not impose a new per‑mile tax. It has sparked debate among lawmakers and motorists about how to fund road repairs as traditional gas tax revenue declines due to the high number of electric vehicles on the road.
Small business owners are also feeling the increase. Lola Gonzalez, 45, co-owns Los Barriles Ice Cream and spends about $100 weekly to fill her truck.
“The prices have gone up, but sometimes they go down,” Gonzalez told San José Spotlight. “But they go up more than they go down.”
One East San Jose gas station owner, who asked not to be named, said wholesale fuel costs have steadily increased.
Oil markets have reacted to the escalating conflict involving Iran, pushing crude prices higher. Concerns over the Strait of Hormuz, which carries roughly 20% of the world’s oil supply, have created uncertainty about production and shipping. When crude prices rise, U.S. gasoline prices often follow.
Oil prices surged to more than $80 per barrel Thurday, the highest level since May 2020 in more than a year. The national average of fuel jumped more than 10 cents to about $3.11 per gallon, according to AAA. Continued instability could cause further increases if supply is disrupted.
Some drivers are trying to adjust. Juan M., a 31-year-old San Jose employee commuting from Morgan Hill, fills up at stations he believes are cheapest, spending $80 to $90 twice a week.
“Honestly, I come (to East San Jose) because I feel like this one is always the cheapest,” he told San José Spotlight at the Gas & Shop gas station, which had prices starting at $4.26 per gallon for regular unleaded fuel.
For others, gas is simply a necessity. Alfredo Mejía, 52, is unemployed and spends about $40 weekly just driving locally to run his errands.
“The truth is I don’t know the gas prices,” he told San José Spotlight. “If I have to put gas, that’s what I’m going to do.”
Contact Maryanne at [email protected].
AP reporters Cathy Bussewitz and Michelle Chapman contributed to this story.