California gas is pricey already. The Iran war could cost you even more
This is read by an automated voice.Please report any issues or inconsistencies here.
The U.S.attack on Iran is expected to have an unwelcome impact on California drivers — a jump in gas prices that could be felt at the pump in a week or two.
The outbreak of war in the Middle East, which virtually closed a key Persian Gulf shipping lane, spiked the price of a barrel of Brent crude oil by as much as $10, with prices rising as high as $82.37 on Monday before settling down.The price of the international standard dictates what motorists pay for gas globally, including in California, with every dollar increase translating to 2.5 cents at the pump, said Severin Borenstein, faculty director of the Energy Institute at UC Berkeley’s Haas School of Business.Business Californians already pay more than the rest of the country for gas.
Now the Iran war is expected to inflict more pain at the pump.That would mean drivers could pay at least 20 cents more per gallon, though how much damage the conflict will do to wallets remains to be seen.“The real issue though is the oil markets are just guessing right now at what is going to happen.It’s a time of extreme volatility,” Borenstein said.
“We don’t know whether the war will widen or end quickly, and all of those things will drive the price of crude.”President Trump has lauded the reduction of nationwide gas prices as a validation of his economic agenda despite worries about a weak job market and concerns of persistent inflation.The upheaval in the Middle East could be more acutely felt in the state.Californians already pay far more for gas than the rest of the country, with the average cost of a gallon of regular at $4.66, up 3 cents from a week ago and 30 cents from a month ago, according to AAA.The current nationwide average is about $3 per gallon.The disruption in international crude markets also comes as refiners are switching to producing California’s summer-blend gas, which is less volatile during the st...