California drivers are paying the highest gas prices in the nation, averaging $6.15 per gallon, as the Iran war disrupts global oil markets. The state has about six weeks of stable gasoline supply, but after mid-June, prices could rise significantly due to reliance on costly imports.
- Gasoline supply is stable through mid-June, but after that, California must outbid global markets for imports, driving up costs. - Refinery closures are increasing California's dependence on imported gasoline, which now meets about 20% of demand.
- Economists warn that if the Strait of Hormuz remains closed for 60 more days, crude prices could spike $40-$80 per barrel, adding $1 per gallon at the pump. - High gas prices may boost EV sales, as some consumers switch to electric vehicles to avoid fuel costs.
The situation remains uncertain, with experts predicting prices could settle under $7, but a prolonged conflict could trigger a crisis that state policies cannot easily mitigate.