Gas prices are rising fast in California with prices up more than a dollar from last month and nearly two dollars higher than the national average, according to AAA.
Drivers at CJ Gas in Sacramento said filling up has become another strain on already tight budgets.
Kevin Mannion stood beside his 2000 Toyota Camry, watching the total cost climb.
“It’s a V6, so it could be better, but it’s not terrible,” he said.
Mannion had just spent $70 to fill his tank — an inconvenience, but one he said he can manage.
“Buying gas is something I have to do anyway to go to work,” he said. “Got to spend money to make money, I guess.”
But the impact on others is more severe.
James Delaney, 31, spent $40 filling up his Honda SUV.
“I know a lot of people who have to make the decision whether am I going to pay my rent this week or am I going to fill up my car and stock my house full of food,” he said. “It’s coming down to a give or take between one or the other.”
Delaney added that rising prices for housing, food, insurance and now gas are compounding the pressure in a state already grappling with a high cost of living.
Why gas prices are rising
John Trainer is a spokesperson for AAA Northern California. He said global events are playing a major role in rising gas prices, pointing to the war with Iran and disruptions in the Strait of Hormuz, which is a critical chokepoint for cargo trade in the Middle East.
“Iran is a large oil-producing country no longer producing oil, and the Strait of Hormuz has 20% of the world’s energy flow through it,” he said. “It’s a massive supply chain and as that shut down, you see the supply of oil hurting, which means the price has really escalated. That is the biggest cause of what’s going on with gas prices today.”
Trainer said seasonal factors, including warmer weather and the state-required switch to a more expensive but cleaner-burning summer fuel blend, are also pushing prices higher. He also compared the current spike to price surges seen in 2022 when California gas averages reached over $6 dollars a gallon during the pandemic recovery and the start of the war in Ukraine.
Fueling campaign debates
Gas prices are also shaping California’s governor’s race with two prominent Democratic candidates offering competing ideas on how to respond.
Former Los Angeles Mayor Antonio Villaraigosa rolled out a gas relief plan that — among other things — is calling for the state to provide relief payments. His proposal would send rebates to low-income families if gas prices stay above $5.50 per gallon for more than a month.
That money would come out of the state’s general fund. When asked how he would get lawmakers to agree with his plan, given that the state is looking at a potential $18 billion shortfall next year, here’s what he said:
“It was Sacramento that created this situation in the first place,” Villaraigosa said. “It’s up to Sacramento to fix it.”
San Jose Mayor Matt Mahan, a fellow Democrat and candidate for governor, is taking a different approach. He wants a temporary suspension of California’s gas tax during the war with Iran — a move that would cut about 61 cents per gallon.
“Gas prices are punishingly high and harming working families,” Mahan said. “They don’t have room in their budget to absorb these increases.”
Both candidates have also suggested rolling back some environmental regulations they argued contribute to higher fuel costs. Villaraigosa and Mahan currently trail frontrunners in early polling with each drawing only a small share of voter support.
Tradeoffs
Experts say those proposals could bring relief, but not without consequences.
Subsidies could reduce immediate costs for consumers but risk encouraging higher prices by oil companies. Meanwhile, suspending the gas tax would cut funding for road maintenance.
Andrew Campbell is the executive director of the Haas Energy Institute at UC Berkeley. He said the broader debate is often framed as a choice between affordability and climate policy, but it doesn’t have to be.
“A lot of the big opportunity to address energy affordability is actually finding and continuing to support smart policies that result in people getting away from fossil fuels onto more electric transportation and clean fuels,” Campbell said.
Other experts like Ethan Elkind, a transportation researcher with UC Berkeley, argue the state might need to rethink how it funds transportation altogether. He thinks a fee based on how many miles people drive — something the legislature is already looking at — could be the solution.
“We have to figure out a long-term solution as we wean ourselves off gasoline,” Elkind said.
