California state average could follow; Russia/Ukraine conflict, supply imbalances drive up prices
BOSTON (March 3, 2022) -- San Francisco today became the first major U.S. city to reach an average gas price of $5 per gallon, according to GasBuddy, the leading fuel savings platform saving drivers the most money on fuel. Prices have continued to increase in the area since October 2021, when San Francisco first broke its all-time record high of $4.73 per gallon.
The majority of U.S. states and cities have seen price increases recently, with the national average rising to $3.70 per gallon today as tensions in Russia and Ukraine have mounted, which has put pressure on oil markets worldwide. California cities typically feel extra pressure at the pump during price increases, as the state taxes gasoline at 51.1 cents per gallon, the highest of any state gas tax in the country. Other factors like the carbon management program and high cost of doing business send prices in the Bay Area particularly high.
Seasonal imbalances in gasoline demand also have the potential to contribute to the record-breaking prices in San Francisco, as with much of the rest of the country. As the weather warms and more American drivers return to the road, putting additional pressure on gasoline supply, Bay Area drivers could see prices continue to rise above the $5 per gallon mark this spring, contingent on further developments in Ukraine.
“San Francisco just made history as the first ever U.S. city to reach an average of $5 gas,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “And unfortunately, this record is likely just the beginning of a larger trend of price spikes to come to California and the entire country. While Bay Area prices might be leading the way for now, there’s a possibility here for the entire state of California to follow suit, with gas prices potentially rising over the $5 mark this spring.”
GasBuddy recommends drivers in the Bay Area always compare gas prices before filling up to save money, and to not fall victim to over-priced stations in popular tourist areas.
About GasBuddy
GasBuddy is the leading fuel savings platform providing North American drivers with the most ways to save money on gas. GasBuddy has delivered more than $3 billion in cumulative savings to its users through providing real-time gas price information at 150,000+ stations, offering cash back rewards on purchases with brand partners, and through the Pay with GasBuddy™ payments card that offers cents-off per gallon at virtually all gas stations across the US. As one of the most highly-rated apps in the history of the App Store, GasBuddy has been downloaded nearly 100 million times. Acquired by PDI Software in 2021, GasBuddy’s publishing and software businesses enable the world’s leading fuel, convenience, QSR and CPG companies to shorten the distance between the fueling public and their brands. For more information, visit www.gasbuddy.com.