San Francisco Gas Prices Surge To $5

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The price of gas, largely driven by crude prices, has started to surge across the US. According to GasBuddy, the price of an average gallon of regular nationwide rose $.10 to $3.34. In what is usually the most expensive city in the most expensive state for gas, the San Franciso price rose to $4.99 and continues to increase.

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Reviewing the national number, Patrick De Haan, head of petroleum analysis at GasBuddy, said: “A majority of the nation’s 50 states have seen gasoline prices rise, with the national average posting a gain for the second straight week, a trend that is hardly surprising for this time of year, and will likely continue as the entire nation has now made the first step toward summer gasoline.” Aside from warmer weather, a decision by OPEC+ to keep crude supplies tight. Military action in the Red Sea has contributed to a rise that will likely be sustained for months.

Suez Crude Prices

Crude prices have been mostly kept in check by record US production. However, crude prices have risen from $73 to $80 last month. As long as many oil tankers avoid the Suez Canal because of attacks on shipping, these prices will stay high.

California’s prices are high for two other reasons. It has no major refineries. And the state has the highest gas tax in the country at $.7798 per gallon.

Gas prices say something about moving to a greener future in the auto industry. The federal government and several large car companies have backed off their plans to have fleets that are mostly EVs by 2030. Demand for EVs has slowed substantially. At the same time, a surge in crude oil production in the US has kept gas prices well short of those that will cut the number of miles Americans will drive. Oil companies continue to make money and have few restrictions on supplying crude as quickly as demand allows.