Californians are now paying $6 a gallon for kick on Route 66

Date:

play

  • Iran conflict disrupts global oil flows, tightening supplies in California and raising prices
  • California’s fuel shortage worsens due to dependence on Asian imports and refinery closures
  • Soaring gas prices spark political debate ahead of state and national elections
  • California fuel inventories hit record low, imports fell sharply in April, Kpler data shows

CARLSBAD, Calif., April 30 (Reuters) – Motorists commemorating the 100th anniversary of U.S. Route 66, a famous symbol of easy-going road trips, paid $6 a gallon for gas in California on Thursday, the highest price in two years, and a political flashpoint brewing as the election looms.

The Iran war has caused the worst disruption to global oil supplies in history, sending gasoline prices soaring around the world and creating particular hardship for California, the most populous state in the United States and the one with the most cars on the road.

The Golden State has some of the highest gasoline prices in the country due to strict emissions standards, high taxes and reliance on imported oil.

With just a month to go before California’s gubernatorial primary, candidates engaged in a heated debate this week over whether to eliminate the state’s $0.61 per gallon gas tax, the highest in the nation.

At the national level, rising gasoline prices are certain to become a major political issue ahead of November’s midterm congressional elections, when President Donald Trump’s Republican Party will struggle to maintain power.

A Reuters/Ipsos poll conducted in April found that three out of four Americans say the Trump administration is to blame for the recent rise in gas prices, but a majority say they expect gas prices to get worse next year.

Highest gas prices in the US

California’s average gas price reached $6.01 per gallon on Thursday, the highest in the nation and the highest price motorists in the state have had to pay since October 2023, while the national average in the U.S. rose to $4.34 per gallon, the highest price since July 2022, according to GasBuddy data.

Rising fuel prices have left U.S. consumers in the lurch, leading to the biggest jump in annual inflation in nearly three years in March.

Analysts expect the pain to worsen as the Iran conflict, which has blocked the Strait of Hormuz and held up nearly a fifth of global oil flows, stretches into the peak of the U.S. summer travel season, which typically begins around Memorial Day in late May and runs through Labor Day in September.

California relies heavily on imports from Asia to meet its domestic fuel needs, making it one of the U.S. states most affected by supply shortages caused by the Iran war. Asian refiners are cutting production and restricting exports as they struggle to find crude to replace barrels from the Middle East. That means less can be exported to California.

The fuel shortage has also forced foreign importers to rush supplies of crude oil and fuel from the U.S. Gulf Coast, pushing up the benchmark crude oil price and, along with it, the overall U.S. fuel price.

U.S. gasoline exports rose to 834,000 barrels per day in March, the highest level since November, with at least two cargoes headed to Asia, according to Kpler data.

California fuel inventories hit an all-time low in April. After hitting a record high of 195,000 barrels per day in the week that ended April 13, gasoline imports into California have plummeted to less than 75,000 barrels per day last week, according to Kpler data.

“California is probably the most affected state in the United States by the Strait of Hormuz, but it has been largely insulated from the event,” said Denton Cinquegrana, chief oil analyst at Dow Jones Energy.

Summer road trip hits speed bumps

Rising fuel prices are fueling political debate in California and across the nation.

California’s current governor, Gavin Newsom, one of Trump’s most vocal critics, has blamed the Iran war for rising gas prices in his state and elsewhere.

“Every American who fills up their tank of gas, buys groceries, or books a flight this week is paying President Donald Trump’s Iran war tax,” Newsom said in a Thursday press release.

Mr. Newsom has faced criticism after energy policies championed by Mr. Trump led to the closure of some refineries in California and increased the state’s dependence on imports.

The California Energy Commission sought to reassure motorists last year that imports from Asia would prevent prices from skyrocketing after the closure of two refineries that provide about 20% of the state’s motor fuel needs. But that has turned out to be a weakness rather than a strength in the current energy crisis.

Miguel Ángel Cruz, a landscaping business, said he used to pay $50 to fill up his truck, but now it costs $80. As he spoke, the price on display at the pump at a gas station in Carlsbad, Calif., climbed over $80, to $85.75 for just over 13 gallons.

“I can’t drive anymore,” Cruz said, citing business needs. “Every time we have a new president in the White House, we are told that this year will be better. But nothing has changed. It’s the same situation, but now it’s even worse because of the Iran war.”

The U.S. government’s Route 66 Centennial Commission and independent motorists have planned a series of events to celebrate the 100th anniversary of the 2,400-mile Route 66 (often referred to as the “Mother Road”), which runs through eight states from Chicago to Los Angeles.

According to the AAA survey, about 41% of Americans planned to visit at least part of Route 66 during the 2026 Centennial celebration. This iconic route is a popular road trip for drivers during their summer vacation.

“I don’t think gas should be this expensive in California…I can’t afford this gas,” said Amanda Martinez, a video editor who recently moved to California from Texas. He added that if gas prices rise further, he would consider driving less.

She plans to ask her employer to allow her to work more from home and issue gas cards, and is considering buying an electric car because her office is about 20 miles from her home.

(Reporting by Daniel Trotta in Oceanside and Carlsbad, Calif.; Shariq Khan and Nicole Zhao in New York; Nicola Groom in Los Angeles; Editing by Alathy Somasekhar, Nathan Crooks, Simon Webb, David Gregorio and Edmund Claman)

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

President Trump says construction will begin soon on UFC arena at the White House

President Trump says he will host a UFC fight...

Research reveals that coffee can protect the body from aging and disease

Drinking coffee accelerates aging in womenWomen who regularly drink...

Consumers’ view of finances is at an all-time low, mainly due to housing issues

Renters and homeowners alike are struggling.Gasoline prices soar due...

Americans object to President Trump’s White House Ballroom and Arch in Washington, D.C.

President Trump unveils three designs for Washington DC's new...