The price of a gallon of regular gasoline nationwide has risen to $2.06 from $1.80 a year ago. In some parts of the country, gas prices nearly are double the current average. The majority of these are in California.
The highest priced gas in California is in clusters around San Francisco and Los Angeles. One station in South San Francisco has a price of $5.03. Its proximity to the entrance of the San Francisco International Airport may be the reason.
Two other stations in California have $4.99 gas, and 20 have gas prices above $3.99. Of the 50 U.S. station locations with the most expensive gas, 47 are in California.
It is not surprising that some parts of California have such high gas prices. The average price across the state is $2.80, according to GasBuddy. Hawaii is a distant second at $2.60 a gallon. By contrast, the state with the lowest average price per gallon of regular is Oklahoma at $1.79.
The national average will go higher, perhaps much higher. Crude oil prices have risen to $40. Three months ago, the price was below $30 a barrel. The perception that crude sold off much too quickly is among the reasons for the rise. While Saudi Arabia continues to pump oil with impunity, most other OPEC members have been more conservative as the drop has hurt their national economies. Demand is less certain. The Chinese economy has slowed but is still robust, with its gross domestic product rising by nearly 7%. It remains the largest oil-importing country in the world. Recent PMI data show the People’s Republic economic drop may have bottomed.
Oil inventory is not the only factor. Proximity to refineries is also an issue. The average gas price in Louisiana is $1.86. In Alabama it is $1.90 and in Texas $1.89. All are near the huge refineries south of Houston and on the Gulf of Mexico, which is dotted by deepwater oil drilling platforms.
Gasoline taxes by state are another factor. The average nationwide is $0.48 per gallon, according to the American Petroleum Institute. In Oklahoma it is $0.35. California has the fifth highest gas tax in the United States at $0.59 a gallon, which is another reason gas prices are so high across the state. Residents of California face gas prices at the high end of the national average, if only for the tax level reason.
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