It’s been nearly four years since motorists in the Golden State saw that high of a price for petrol, which peaked at four bucks a gallon in the summer of 2014. But now, at least according to some industry observers, those bad ol’ days may be back by Memorial Day.
California already has the country’s highest-priced gasoline, currently averaging $3.30 a gallon.
With global oil markets starting to climb, that average could climb by more than 10 percent, says Patrick DeHaan, head of petroleum analysis at Boston-based GasBuddy, which monitors fuel prices across the U.S.
According to the San Jose Mercury News, pump prices, which include taxes, are already 47 cents over the same time last year in California, the biggest statewide price change in the U.S.
California consumers are also facing additional state taxes on gasoline. Starting in November, motorists have been paying 12 cents more per gallon for gasoline and 20 cents more for diesel. This was the second of two increases last year, following a gas tax hike in July.
Seasonal demand dramatically affects oil and gas prices. We’ve all heard the message before: you can expect them to rise every spring. And that’s because oil futures traders know that demand for gasoline jumps in the summer as vacationing Americans hit the road so they start buying futures contracts in the spring in anticipation.
So California’s leaders and Big Oil will cash in bigtime in 2018.