The San Francisco Bay Space has the costliest fuel within the nation, and it might worsen quickly
The Bay Area has the dubious honor of having the most expensive gasoline in the United States.
The average value for normal gas in the Bay Area was about $ 4.33 a gallon on Sunday, an increase of about 7 cents over the past week, said Patrick De Haan, head of petroleum analysis at GasBuddy.
Industry analyst Trilby Lundberg said the spike across the country is less than rising crude oil prices, which means another spike is in sight. This, in addition to wholesale increases and new taxes on gas, could fuel cost hikes across the country.
These cost increases as well as the shortage of labor in the industry mean that gas prices will probably continue to rise in the summer without any major relief. Truck drivers and other gasoline workers were laid off during the pandemic, creating staffing problems.
“It can take a while [until gas prices go down] because of the ongoing COVID-induced headache, “said De Haan.” The oil industry has made long-term decisions to stop production and here we are and now the oil industry is in the same boat as everyone else with work challenges. “
In the Bay Area and all of the west coast, the problem will be worse than in many other parts of the country, according to De Haan.
“Unfortunately, the west coast, including California, Oregon, and Washington, has not just seen the traditional surge in demand like the rest of the country like COVID has [increased demand], but there were some refinements that made the issues worse, “he told SFGATE.
These refining problems, while minor, are significant enough to “overturn” the supply, he said.
De Haan believes that gas prices in the Bay Area could hit $ 4.50 in the summer due to pandemic demand, pandemic labor shortages and these refining issues. Peak gas prices are likely to come in four to six weeks.
There’s a small silver lining, De Haan says, that gas prices are unlikely to break the record highs of 2012 when a gallon could average $ 4.75 in the bay.
Another point of help could come if remote workers are allowed to stay away all year round, said De Haan. The gas industry usually sees prices drop at the end of summer when the summer road trips and weekend getaways run out, but he fears that once people are encouraged to re-enter the personal world of work, this well-known source of reduced gas prices could disappear.
“If these commuters return this fall, it could offset this seasonal downturn and keep prices high,” he said.
The Associated Press contributed to this report.
