The statewide average for 87-octane gasoline in California has topped $6 a gallon as the Iran-war-driven global energy crunch ripples across the West Coast, the hardest-hit U.S. region. Meanwhile, the national average remains above the politically sensitive $4-a-gallon threshold, hovering around $4.30, according to AAA data as of Thursday morning. It’s clear that bad ‘green’ energy policies by unhinged, left-wing politicians in the Golden State have left the state’s energy complex in a total mess, with no buffers.
"That’s the highest since October 2023. No other state has ever surpassed the $6-a-gallon mark. At the outset of the war, the price in the Golden State was $4.64 a gallon," Bloomberg wrote in a note earlier.
Beyond gasoline, diesel prices in California now average a staggering $7.48 per gallon, up from $4.98 one year ago.
On the national level, gasoline prices continue to climb, now at $4.30 and remaining above the politically sensitive $4 level for one month.
Also on the national level, diesel prices - the fuel that keeps the economy humming - are around $5.49 and have yet to reach their previous high of approximately $5.69 in early April.
West Texas Intermediate, the main U.S. crude benchmark, jumped to nearly $110.50 a barrel overnight, while Brent, the global benchmark, topped $126. This spike in oil prices was due to continued uncertainty over a near-term peace deal between the U.S. and Iran, as well as Trump laying the groundwork for an extended blockade of Iranian ports, according to MSM reports.
GasBuddy head analyst Patrick De Haan wrote on X, "WTI and Brent pushing higher after Trump says to expect prolonged blockade on the Strait," adding, "Expecting big gas price hikes as early as noon for MI, IN, IL, WI, and perhaps OH."
With the national average for gasoline above $4, we have already detailed emerging consumer behavior shifts at gas stations and convenience stores. Actual demand destruction should arrive north of $5 gas.
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Let's not forget we've outlined how the global energy crisis ripples across the world, already impacting Asia and Europe, and for the U.S., will affect California the hardest (read why).