Gas prices in California have surpassed $5 per gallon.
The war with Iran has caused a sharp rise in gasoline prices, which, according to the American Automobile Association, has hit consumers in California particularly hard. The average price per gallon in the state has increased by $0,55 since the start of the conflict in the Middle East, writes The Guardian.
The American Automobile Association reports that in California, the most expensive gasoline market in the United States, the average price per gallon on March 9 was $5,20, compared to $3,47 nationwide. The national average has increased by nearly $0,50 since the conflict began, while in the Golden State it has increased by $0,55.
After the US and Israel launched attacks on Iran on February 28, the price of oil exceeded $100 per barrel for the first time in nearly four years. The conflict damaged oil and gas facilities and delayed ships transporting approximately 20 million barrels of oil per day in the Persian Gulf.
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About 20% of the world's oil passes through the Strait of Hormuz daily, but the route has been effectively closed for the past week.
Currently, about 9 million barrels of oil a day are not reaching the market due to attacks on facilities or because producers are taking precautions, said Rystad Energy chief economist Claudio Galimberti.
“Now that all this has stopped, we are in a situation of extreme shortage,” he noted.
Price increases were already expected due to increased demand at this time of year and the launch of summer gasoline production. However, the conflict led to a sharper increase in fuel prices. According to ABC7, gasoline was selling for $8,21 per gallon at one Chevron station in Los Angeles.
"I drive for Uber, and it's killing me. Gas prices are so high right now... even though they were high even before the war," one driver emphasized.
Donald Trump dismissed concerns about rising prices, saying they would "fall very quickly" once the conflict ends. His administration claims the price hikes will last weeks, not months.
White House press secretary Caroline Leavitt called the price hike "a short-term disruption for the long-term benefit of removing Iran's rogue terrorist regime and permanently ending its restrictions on the free passage of energy resources through the Strait of Hormuz."
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Californians pay more for gasoline than residents of any other U.S. state, primarily due to taxes, environmental regulations, and a sharp decline in refining capacity. However, Governor Gavin Newsom's office claimed that the president bears full responsibility for the current price hike.
"California's average gas prices have remained below $5 for nearly two years now," the governor's office said in a statement posted on social media. "This is a result of Trump's war with Iran."
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