"The price of the international standard dictates what motorists pay for gas globally, including in California, with every dollar increase translating to 2.5 cents at the pump, said Severin Borenstein, faculty director of the Energy Institute at UC Berkeley's Haas School of Business. That would mean drivers could pay at least 20 cents more per gallon, though how much damage the conflict will do to wallets remains to be seen."
"The real issue though is the oil markets are just guessing right now at what is going to happen. It's a time of extreme volatility. We don't know ether the war will widen or end quickly, and all of those things will drive the price of crude."
"Californians already pay far more for gas than the rest of the country, with the average cost of a gallon of regular at $4.66, up 3 cents from a week ago and 30 cents from a month ago, according to AAA. The current nationwide average is about $3 per gallon."
A U.S. attack on Iran has disrupted Middle East shipping lanes, causing Brent crude oil prices to spike by up to $10 per barrel, reaching $82.37 before settling. Each dollar increase in crude oil translates to 2.5 cents at the pump for California drivers. The conflict creates extreme market volatility, with outcomes depending on whether the war widens or ends quickly. California already pays significantly more for gas than the national average at $4.66 per gallon compared to the $3 national average, due to higher state taxes and cleaner fuel requirements. The timing coincides with refiners switching to summer-blend gasoline, which typically adds 15 cents per gallon to prices.
Read at Los Angeles Times
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