Fuel prices in California have surpassed the national average over the Labor Day weekend –– making it the most expensive gasoline market in the US.
The average price of a gallon of diesel in the Golden State was recorded to be $7.8256 as of Sept. 7 –– marking a 52.02% surge compared to last year’s average of $5.1478, according to AAA Fuel Prices.
The current average price for a gallon of regular gasoline stands at $5.8602, up slightly from $5.8468 yesterday, $5.6896 a week ago, and $5.6093 a month ago—an overall 26.95% increase from last year’s average of $4.6162.
Mid-grade and premium fuels follow the same steady upward climb, currently sitting at $6.0759 and $6.2814 per gallon respectively, compared to $4.8459 and $5.0276 a year ago.
The most dramatic price escalation occurs in diesel, which has surged to a current average of $7.8256 per gallon—up from $7.8105 yesterday, $7.3116 a week ago, and $6.8770 a month ago.
In three states — California, Hawaii and Washington — average gas prices are at more than $5 per gallon. Indiana, Mississippi and Texas are paying the least, according to the AAA data.
“The national average is $4.14, up 4 cents from last week. Continued volatility in the Strait of Hormuz has pushed crude oil prices in the $90 per barrel range,” AAA said in a statement last week. The national average has never been above $4 per gallon on Labor Day.
Experts say that the closure of Strait of Hormuz closure, the war in Iran and California’s pipeline and eco policies have sky high prices.
Paasha Mahdavi, a U.C. Santa Barabara political science professor, predicts that diesel prices in California could go as high as $8 per gallon by the end of September due to the fall harvest.
“The California ‘premium’ over the rest of the US for diesel was averaging $1.14/gallon before the war, and it’s now averaging $1.58/gallon, so the rising trajectory in diesel prices is getting steeper for Californians than other Americans,” Mahdavi told the SF Chronicle.
According to new data from the Energy Information Administration (EIA), gasoline demand decreased last week from 9.04 million barrels per day to 8.92 million.
Total domestic gasoline supply decreased from 206.8 million barrels to 205.7 million. Gasoline production stayed the same as last week, averaging 9.8 million barrels per day.
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