With war in Eastern Europe potentially putting a crimp on world energy supplies, prices at the pump continue to rise. They’ve been rising steadily since President Biden took office, and they’re getting even higher. And people in California are feeling it especially hard.
Gas prices in California are reaching astronomical levels, and it could seriously impact the state’s economy. The average price of a gallon of gasoline is $4.82 in California, more than 33% greater than the national average of $3.61 a gallon. Many areas may see $5 gasoline soon, and prices for premium gasoline have already breached that barrier in many areas of the state.
Part of that has to do with California’s high gas taxes, which are among the highest in the country. But additional costs are imposed by a state-run cap and trade carbon emissions program. In total, the Western States Petroleum Association calculates that the state’s policies add an additional $1.27 to the cost of each gallon of gasoline. So Californians could be enjoying gas that’s as cheap as gas purchased elsewhere in the country, but the government doesn’t want them too.
Despite those high prices, demand for gas is still high. And with city development that is largely car-centric, high gas prices are something Californians are going to have to tolerate. If war in Ukraine gets any worse, and if sanctions against Russia expand to include Russia’s energy production, that could have a dramatic effect on oil prices and therefore also on gasoline prices.
While it may be hard to believe, one day we could be looking back on $5 gas and wishing it were that low again. Things in Eastern Europe could accelerate so dramatically that oil prices could skyrocket and gasoline prices would surge to even more insane levels. It might not be a bad idea to stock up on gasoline if you can, at least for the short term. World War I didn’t start in a day, and neither will World War III. Let’s just hope this conflict ends soon, and that we don’t find ourselves embroiled in another major war.