Gas Prices Are Skyrocketing, But One State Gets Hammered More Than Others | EUROtoday

The United States and Israel’s warfare in opposition to Iran is throwing world oil markets into turmoil, with crude oil futures skyrocketing resulting from Iran largely closing off oil tanker entry to the Strait of Hormuz, the place 20% of the worldwide oil provide flows out of.

Since the army strikes in opposition to Iran started on Feb. 28, crude oil futures have skyrocketed to over $100 a barrel for the primary time in practically 4 years, earlier than dropping again to round $80 on Monday. The common worth of a gallon of standard fuel has jumped 19% over the past month, going from $2.93 a gallon this time final month to $3.57 a gallon as of March 11, in response to AAA. However, in California, the common worth sits at a whopping $5.33 a gallon, effectively outpacing the remainder of the nation.

California is commonly hit the toughest when the worldwide oil provide is disrupted resulting from a number of causes, together with the general increased price of residing, increased fuel taxes, environmental laws and restricted refinery capability.

California regulation requires a novel mix of gasoline, which is designed to scale back air pollution and enhance air high quality, in response to the U.S. Energy Information Administration (EIA). This makes the state significantly vulnerable to provide chain disruptions because of the restricted variety of sources that produce this distinctive mix. Out-of-state refineries solely manufacture this mix to serve the California market, which means many of the fuel used within the state comes from in-state refiners.

Data from the California Energy Commission (CEC) from March 2025 reveals general environmental laws within the state contribute to a mean rise of 54 cents per gallon.

Geographic limitations, coupled with the state’s demand for the distinctive mix of fuel, additionally hamper the place the gasoline may be imported from. The majority of California’s fuel is refined in-state, because of the West Coast’s lack of pipeline connections to refineries east of the Rocky Mountains, and pipelines to the Gulf Coast being restricted. Of the restricted variety of refineries which have entry to California’s fuel markets, only a few can meet the state’s gasoline mix necessities, in response to the EIA.

Higher taxes on gasoline additionally play a serious position within the higher-than-average costs within the state, with CEC information exhibiting they contribute to a mean rise of 90 cents per gallon. While the federal fuel tax is uniform throughout all states, and contributes roughly 18 cents a gallon to the 90 cents a gallon, the opposite 72 cents a gallon is made up of the state’s excise tax (60 cents a gallon), state gross sales tax (10 cents a gallon) and an underground storage tank payment (2 cents a gallon), in response to the EIA. The excise tax is by far the best within the nation, with the common throughout all states being 28 cents a gallon.

California Gov. Gavin Newsom has asserted the elevated costs are solely the fault of President Donald Trump’s determination to take army motion in Iran.

“Average gas prices in California have stayed below $5 for nearly two years – until now,” the governor’s workplace mentioned in a press release on social media. “This is because of Trump’s war with Iran.”