San Francisco Gas Prices Reach New All-Time High at $4.75 Per Gallon; Heavy rains, global supply crunch amidst COVID recovery all to blame
Average gas prices in the San Francisco metro area today reached a new all-time high of $4.75 per gallon, according to GasBuddy
Prices have now breached the previous record of $4.743 per gallon, set over 3,300 days ago in 2012. While the reasons for the rise are many, the bulk of the move can be attributed to heavy rains in the Bay area, which caused some refinery outages, on top of the highest global oil prices in over seven years due to a developing energy crunch and as demand surpasses oil supply globally. In addition, California has its own CARB-mandated gasoline, and in recent years, California also
voted to approve raising gasoline taxes to the highest in the country.
“The Bay area just recorded the nation’s highest ever average price of gasoline in the United States; certainly a feat that even last year seemed impossible. But thanks to myriad challenges, derived from the Covid-19 pandemic, the average fill-up now costs motorists in the Bay area nearly $62. This is nearly a 65% premium to the average price in the cheapest U.S. city today –
Lawton, Oklahoma, where the average stands at just $2.86 per gallon,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “While prices in the Bay soared to similar levels in 2012, they were temporary as a result of a refinery fire. My concern here is that even after refineries get back online after a deluge of rain, prices may remain near or at record levels
thanks to the continued rise of the price of oil.”
While the pain at the pump has never been this bad, there remains a possibility that prices could eventually rise to nearly $5 per gallon in the Bay area if oil production doesn’t catch up to the global rise in demand. But while that sounds ominous, motorists in Hong Kong, where the average price is approaching $10 per gallon, would love to pay Bay area prices.
- Woman Shocked at Gas Prices: Shutterstock