Gasoline prices in California hit an all-time high last week at $4.72 a gallon. And all expectations are that prices will continue to rise here and nationwide.
Gas prices in California hit record high
California already had some of the highest gas prices in the country. Now, some experts are predicting that prices could reach $5 a gallon or more within months.
Small businesses are preparing for gas price hikes
Small business owners in California should keep a close eye on gas prices as it could affect their ability to stay within previously planned budgets. This is especially true for all companies that rely on multiple vehicles or even fleets.
Making deliveries is becoming more expensive and suppliers and carriers are also being hit hard by the price increases, potentially leading them to raise their own prices.
California Prices not indicative for all of America
While many commentators have used rising gas prices in California to predict mass price hikes across the country, there have also been some comforting rationalizations on the subject. For example, GasBuddy CEO Patrick De Haan believes that California’s gas price hikes are not indicative of the state of gas prices across the United States.
De Haan said on social media: “There’s a lot of noise and alarmists who care more about clicks than accuracy. I’ve heard calls to increase #gas prices to $5, 6 or even $7 nationally. Maybe Cali could see $5 or $6, but we’re a long way from becoming a national average.”
President Joe Biden also indicated that there could be economic consequences in the energy sector should Russia invade Ukraine. “I’m not going to pretend this is painless,” the president told ABC News. “We are preparing to use every means and authority at our disposal to remedy the situation at the pump.”
Gas price increases due to higher crude oil prices
Recent gas prices have caused higher crude oil prices. The US national average for a gallon of gasoline was $3.51 on Wednesday, about $1 a gallon higher than the average price at the same time last year. Perhaps more worryingly, national gas prices have risen faster than California’s on a percentage basis.