“I do not expect anywhere, aside from California, to see anything remotely close to $6,” says Patrick De Haan, head of petroleum analysis GasBuddy.com. “Even in California, the $6…
Get ready to dig deeper, motorists. California’s already high gas prices will likely top $5 a gallon in the coming weeks as a result of the Russia/Ukraine conflict, an industry expert said, and motorists could eventually pay as much as $6 per gallon if the situation continues to escalate. Patrick De Haan, head of petroleum analysis at price tracker gasbuddy.com, said sanctions imposed by the U.S. and other Western nations against Russia will tighten oil supplies, which hikes crude prices and makes gasoline production more costly. Some fear gas prices could eventually hit $6 to $7 a gallon, De Haan said during an online press conference with reporters Thursday. “I do not expect anywhere, aside from California, to see anything remotely close to $6,” he said. “Even in California, the $6 mark is likely not to be hit in terms of an average unless the situation in Russia worsens dramatically.” As the third-largest producer of petroleum and other liquids (behind the U.S. and Saudi Arabia), Russia provides about 10% of the world’s oil. Crude oil prices have already topped $100 a barrel this week, well above the $50- to $60-a-gallon levels seen a year ago. “Terminals, where fuel tanker trucks fill up, have already raised their price to reflect today’s higher costs,” De Haan said. “And gas stations are raising their prices to reflect the increase in costs.” Stations will slowly boost prices over the next couple of weeks, De Haan said, with most states seeing an increase of 5 to 15 cents a gallon. Industry experts say the situation will be compounded by increased demand for fuel as the weather warms up and more people travel. California’s upcoming switch to a summer blend of gas, which is more costly to produce, also figures into the equation. Southern California gas prices are already uncomfortably high. On Friday, the average price for a gallon of self-serve regular in Los Angeles County hit a record $4.84, GasBuddy reported. That was up $1.14 from the year-ago average of $3.70 a gallon. Orange County was close behind, with an average of $4.
