The state of California has been battling unlivable wages, unprecedented inflation, and $1.6 trillion state and local government debt. This in congruence with a failing housing market and soaring taxes have encouraged wealthy residents to flee the state. In the latest financial l shock, gas prices rise to above $7.
The Golden State’s gas average is already well above the national average of $3.667. California’s state average is about $5.42 per gallon. But now, one gas station in Menlo Park, CA has set a new worrisome standard: $7.29 per gallon.
One X user posted an image of the gas prices at the Chevron in Menlo Park and stated, “One gallon of gas (Menlo Park) above the federal hourly minimum wage”. The dramatic increase leaves California residents wondering how and why the prices have spiked so suddenly and dramatically.
California gas prices are already well above the national average. And prices have continued to rise as a result of the tensions in the Middle East putting pressure on oil prices. The increase in demand drives up oil prices, thus driving up the cost to fill up your tank.
A spokesperson for AAA, Andrew Gross stated, “The situation overseas with war in both the Middle East and Ukraine has the oil market on edge… But this is also the time of year we see a bit of a lull in gasoline demand between the end of spring breaks and ahead of Memorial Day”.
Other gas stations in Menlo Park offer gas for $6, which is still well above the state and national average. It seems California’s gas prices have been on a steady uphill climb seeing as last year’s average was $4.90 as compared to the current $5.42.
California’s gas prices are typically higher than other states due to high production costs. The higher production costs combined with the aforementioned factors have made wholesale prices go “ballistic”.
Fortunately, the global oil prices should level out in the coming weeks and this should have an obvious effect on the price at the gas pump in California as well the rest of the U.S.
Tom Kloza, the head of energy analysis at OPIS confirmed, “A correction for gasoline, and perhaps for crude, looms and it almost certainly will occur in the next 30 days”, which is good news for California drivers!
