State’s gas prices to continue rising
Drivers in California continue to pay the highest prices for gas in the country, according to the American Automobile Association.
In the Bay Area, drivers are seeing some of the state’s highest average prices, and will soon pay even more for a gallon of gas as the state’s gas tax is scheduled to increase by about 3 cents on July 1.
Prices began rising in California and the U.S. after Russia, the world’s third-largest producer of petroleum and other oil in 2020, invaded Ukraine in February.
Since then, the price of crude oil has risen from $90 per barrel to more than $100.
“Demand is still ahead of supply, which has kept oil elevated,” said Patrick De Haan, head of petroleum analysis for GasBuddy.
“And there hasn’t been meaningful long-term improvement in the supply situation with sanctions on Russia still effectively keeping some of their oil off the global market,” he added.
In response to Russia invading Ukraine, President Joe Biden in March announced a ban on Russian oil, gas and coal, although the U.S. received only about 3% of crude oil from Russia in 2021, according to the U.S. Energy Information Administration.
In the Bay Area, gas stations in San Francisco and San Mateo, Napa and Sonoma counties had some of the state’s most expensive gas as of Wednesday, according to data by AAA.
Napa County and San Francisco had the highest prices in the Bay Area, according to the AAA. The average price for a gallon of regular gas was running at $5.93 and $5.91 on Wednesday, respectively, compared to a year ago, when they were at $4.23 and $4.16.
The lowest average prices on Wednesday were in Contra Costa County at $5.77, according to the AAA.
Average gas prices on Wednesday, according to AAA data, were $5.91 in San Mateo County; with $5.79 in Santa Clara County; $5.80 in Alameda County; $5.68 in Solano County; $5.87 in Sonoma County; and $5.86 in Marin County.
De Haan said California drivers have seen some relief at the pump compared to a month ago when average gas prices were at $5.85. The current average is at $5.75 per gallon, according to AAA.
But it’s still unclear when prices will start to go down. De Haan predicted that until “there’s a positive ‘ending’ to the Russia war on Ukraine,” prices will remain high.
“Summer is likely to be bumpy as it doesn’t look like the Kremlin will be giving up its war on Ukraine anytime soon,” he added.