California Gas Prices Continue to Rise

A man pumps gas in Irvine, Calif., on April 1, 2022. (John Fredricks/The Epoch Times)

Southern California gas prices continued to increase for the second week, rising 28 cents per gallon in the last month as more retailers make the switch to summer-blend fuel and refinery maintenance cuts production, according to industry experts.

Saturday’s average price of $4.88 was 7 cents higher than a week ago, according to the Automobile Club of Southern California.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area was $4.93 per gallon, which was 8 cents more than last week, 22 cents higher than last month, and 2 cents lower than last year, the automobile club reported.

In San Diego, the average price was $4.92, which was 6 cents more than last week, 20 cents higher than last month, and 2 cents cheaper than this time last year.

California’s central coast gas prices rose 9 cents higher than last week, reaching an average of $4.95 Saturday.

“According to Oil Price Information Service, one local refinery has announced it will be undergoing maintenance for a week starting [Thursday], while the U.S. Energy Information Administration reported that West Coast refinery production rates and gasoline imports increased over the past week,” said Auto Club spokesperson Doug Shupe. “Gas prices may continue to experience upward pressure as demand grows in the next few months.”

Another factor affecting California’s gas prices is the switch to the more expensive summer-blend fuel mandated by the state. The fuel is easier on the environment but adds from 20 cents to 25 cents per gallon.

Starting in February, gas prices began to differ between Southern and Northern California because of the switch, according to California Energy Commission spokeswoman Sandy Louey.

Southern California retailers make the switch to summer-blend fuel Feb. 1, while Northern California switches March 1.

“Increasing demand also creates upward pressure on prices as we near the end of winter,” Ms. Louey told California Insider.

The state’s new Division of Petroleum Market Oversight, operating under the California Energy Commission, was created by Gov. Gavin Newsom last year in response to a spike in fuel prices.

The division, which began operating in June 2023, has the power to refer any cases of alleged “price gouging” to the California Attorney General’s Office, but has not yet filed any civil or criminal actions against any company for violating regulations.

California Governor Gavin Newsom speaks in the rotunda of the California State Capitol in Sacramento on March 28, 2023. (Courtesy of the Office of Governor Gavin Newsom)

Prices at the pump have increased steadily across the United States, rising 8 cents from last week to an average of $3.40 Saturday, according to the American Automobile Association (AAA).

The association attributed the increase to more expensive oil, which has increased to nearly $80 per barrel, up about $10 since December. The cost of crude accounts for nearly 60 percent of pump prices, AAA reported.

“Spring is nearly here, with longer days, better weather, and more opportunities to hit the road,” said Andrew Gross, AAA spokesman in a statement March 7. “As we are seeing this reflected in rising gasoline demand. But remember we see this trend every year.”

According to the Energy Information Administration, which collects and analyzes energy information for the federal government, gas demand jumped from 8.47 barrels to 9.01 barrels a day last week. But domestic supplies decreased, according to the AAA.

Crude stockpiles in the U.S. were also lower than expected, Reuters reported.

“The drawdown in gasoline and distillates has the market’s attention,” Price Futures Group analyst Phil Flynn told Reuters. “This is a wakeup call that we have a very tight market.”