California gas prices could rise as Iran conflict rages on

Analysts are warning that oil prices in California could spike as the US engages in an all-out war with Iran, with tensions continuing to rise in one of the largest oil-producing nations in the Middle East.

“This will quickly translate into higher prices at the pump for American drivers,” Christine Romans, senior business correspondent, told NBC News. “Looking at it this way, a $1 rise in crude oil prices generally means up to two and a half cents more for a gallon of gasoline. So, quick math, a $10 spike in oil would be up to 25 cents more for a gallon of gasoline.”

U.S. oil prices rose by 7%, and the global price (Brent crude) went up by 8%, the outlet reported. Before this jump, oil prices had already increased by 17% earlier this year. In short, oil is getting more expensive, and this recent increase is just adding to that trend.

Victoria Jensen, a California Uber driver, said she is feeling the impact of higher prices.

“Hugely, because a lot of times the work is slow, and when the prices are really high, that just makes it a lot harder for us to make money for ourselves, for our costs like rent and other bills,” Jensen said.

It’s not just the war in Iran driving prices higher; California’s annual switch to summer-blend fuel is also coming up, which tends to push oil prices upward.

Environmental and eco-friendly policies in the state also contribute to higher production and distribution costs.

“Gas prices are climbing as refineries undergo maintenance ahead of the switch to summer-blend fuel. The unknown is how geopolitical tensions between the U.S. and Iran will continue to impact crude oil prices,” Marie Dodds, public affairs director for AAA Oregon/Idaho said in a statement. “That could mean volatility at the pumps, in addition to the normal seasonal spring increases.”

Here are the latest stories on the rising gas prices:

California is the first state in the nation to make the switch, while East Coast states are last. The transition usually results in price increases at the pumps because refineries often undergo maintenance ahead of the switch, which reduces output, and summer-blend fuel is more expensive to produce. Summer gasoline has a lower Reid Vapor Pressure, which helps reduce evaporation in warmer temperatures.

Currently, California leads the nation with the highest gas prices, averaging $4.59 per gallon, followed by Hawaii at $4.40 and Washington at $4.16. Oregon’s average has risen to $3.69, an 11-cent increase from last week. Nationwide, the average price for regular gasoline holds steady at $2.92 per gallon.

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