“That’s a lot more than I expected,” said Beth Mayer of Saratoga.
She selected the premium gasoline option – $6.09 a gallon – before grabbing the pump nozzle at the 76 gas station on South San Antonio Road in Los Altos last week.
“It makes me glad to have a hybrid,” Mayer said as she filled up her BMW. “It’s my first time in maybe two months.”
And just a month ago, the state average for gas prices was $4.65 a gallon, according to the American Automobile Association (AAA), the not-for-profit travel federation. At the 76 station that Wednesday, the cheapest gas was $5.70.
As of Thursday, the average gas price in Santa Clara County was $5.63. The state average was $5.61 and the federal average was $3.88, according to AAA.
The price spike has come just over the last month as major armed conflict has exploded across the Middle East. The United States and Israel launched missile strikes on Iran Feb. 28, prompting retaliations and counter-retaliations over the last several weeks. Subsequently, the Strait of Hormuz – which connects the Persian Gulf to the open ocean – has been stifled from shipping Middle East oil to global markets.
“Oil is part of a global market which means when there’s a shortfall in one part of the world, it affects other parts too,” said Doug Johnson, spokesperson for AAA. “Even though the U.S. doesn’t import oil from Iran, China and India do. Now China and India must get oil from the same sources as the U.S. and bidding gets competitive. Demand goes up, supply drops, and that’s what impacts prices at the local gas stations.”
But despite the price surge, most area gas stations seemed business-as-usual. At the Chevron station at the crest of Main Street, a few vehicles filtered in and out by an electric Tesla Cybertruck parked in the corner. The cheapest gas was $5.99. Some gas users said they had to bear with the cost despite its pinch on the pocketbook.
“It is what it is. It ebbs and it flows. It’s something you got to be prepared for,” said Giuseppe Nevigato of East Palo Alto, filling up a red two-gallon gas tank at the Shell station at 1288 West El Camino Real in Mountain View, just as temperatures were starting to top 90 degrees at midday.
“It’s like eggs, milk, anything. It all goes up and down,” he said.
The last time there was a similar jump in prices was at the beginning of the conflict in Russia and Ukraine, when the national average jumped from $4.06 to $4.17 on March 7, 2022, to March 8, 2022, Johnson said.
According to AAA, prices were about a dollar less one year ago in the state – averaging about $4.65. The highest recorded average was June 14, 2022, when the price for a gallon of regular unleaded was $6.44. In San Jose, the nearest city metro area catalogued by AAA, the highest recorded average was $6.55.
Johnson called the price jump bad timing for Californians – the state already has the highest prices in the country. Supply was also set to take a hit after Valero announced it will shut down its refinery in Benicia, which will eliminate 12% of the state’s current gasoline production capacity, Johnson said.
“Even before this conflict began we already saw gas prices go up as we typically do at the end of February and early March. This time of year, refineries begin producing summer-blend gasoline which contains pricier additives to help reduce evaporation during warmer months. Gas demand also increases this time of year as spring break travel season began and demand typically goes up for summer travel as well,” Johnson said.
Governor Gavin Newsom leveled the blame on President Donald Trump for triggering the spike.
“Trump launched a war in Iran with no plan, the Republican majority in Congress is looking the other way, and American families across the nation are now paying for it at the pump,” read a press release from the Governor’s Office on March 10.
And even if local drivers have the money to absorb the price spike, they’re cognizant that others may not.
“It doesn’t make much difference to me, I just don’t drive much,” said Paul Simon, a Los Altos Hills resident with a blue Volvo at the 76 station in Los Altos. “I think it affects people who don’t have as much money. If they have to spend more for gas, it’s harder to buy food. It affects everything.”
Johnson said AAA provides tips for saving gas. The tips include planning fuel-efficient routes around planned trips, avoiding speeding to maximize fuel economy, avoiding excessive idling and maintaining correct tire pressure and alignment.
