{"success":true,"data":{"id":"b8c75462-a0a7-490f-b9ac-8a3330445732","title":"Gas prices climb higher across California as experts warn this surge will be different","summary":"California drivers are paying more every day at the pump, and energy experts warn this latest surge may not be like the others. As global conflicts squeeze fuel supplies, US refineries are already running near full capacity and emergency oil reserves have been heavily tapped, leaving little room to ...","content":"# Gas prices climb higher across California as experts warn this surge will be different\n\nCalifornia drivers are [paying more every day at the pump](https://nypost.com/2026/07/20/business/us-gas-price-average-jumps-to-4-a-gallon-amid-the-iran-attacks/), and energy experts warn this latest surge may not be like the others.\n\nAs global conflicts squeeze fuel supplies, [US refineries are already running near full capacity](https://nypost.com/2026/03/23/opinion/price-gouging-a-familiar-lame-excuse-for-californias-expensive-fuel/) and emergency oil reserves have been heavily tapped, leaving little room to absorb another disruption.\n\nFor California motorists, who already pay the nation’s highest gas prices, that could mean even more pain ahead.\n\nAlthough shipments through the Strait of Hormuz briefly increased after last month’s ceasefire between the US and Iran. John McAdorey – stock.adobe.com\n\nThe global supply crunch may be driving prices higher. Jonathan Alcorn for CA Post\n\nIn Los Angeles County, the average price for a gallon of self-serve regular gasoline rose Friday for the 10th consecutive day, climbing 2.2 cents to $5.645, according to AAA and the Oil Price Information Service.\n\n## Explore More\n\nThe average has jumped 24 cents over the past 10 days, including a 3.1-cent increase Thursday.\n\nPrices are now 16.8 cents higher than a week ago, 10.4 cents above a month ago and $1.165 more than they were one year ago.\n\nThe spike is hitting drivers across the state.\n\nThe state’s taxes and environmental regulations have created a structural “California premium.” Pedro Colo for CA Post\n\nAAA’s regional office in Walnut Creek reported average prices of $5.76 per gallon in San Francisco, $5.58 in Oakland and $5.57 in San Jose.\n\nCalifornia’s statewide average climbed to $5.59 a gallon, up 17 cents from last week, giving the state the highest average gas price in the nation.\n\nThe latest surge comes as the global fuel market faces mounting pressure.\n\nThe squeeze has sent US wholesale diesel futures up 26% this month and pushed the average profit margin refiners receive for converting crude into gasoline and diesel to a record high. Jonathan Alcorn for CA Post\n\nUS refineries are running at 96% of capacity, with plants in the Midwest and Rocky Mountain regions operating at 100%, according to the US Energy Information Administration.\n\nUS energy companies have also stepped up exports of petroleum products, including diesel and jet fuel, following Iran’s closure of the Strait of Hormuz, a critical shipping route that carried about one-fifth of the world’s oil supplies before the Middle East conflict began in February.\n\n“The US export increase is helping but it’s a band-aid on a big gunshot wound,” Joe DeLaura, senior energy strategist at Rabobank, told [the Financial Times](https://www.ft.com/content/ecf9967d-de7f-405f-b746-f09a26f3a86a?syn-25a6b1a6=1). “We’re trying to make up this deficit by running all out, but that means the second refineries go down that’s really bad.”\n\nThe concern now is that the system has little room for another hit. Pedro Colo for CA Post\n\nAlthough shipments through the Strait of Hormuz briefly increased after last month’s ceasefire between the US and Iran, renewed fighting has again frozen traffic through the waterway.\n\nHouthi rebels have also threatened a Red Sea route Saudi Arabia uses to move most of its crude exports.\n\nAt the same time, Ukrainian drone strikes have reduced Russia’s refining capacity, while Moscow this month banned diesel exports, adding more pressure to global fuel supplies.\n\nThe squeeze has sent US wholesale diesel futures up 26% this month and pushed the average profit margin refiners receive for converting crude into gasoline and diesel to a record high.\n\nThe concern now is that the system has little room for another hit.\n\nWashington has already released about 77% of the 172 million barrels it pledged in March from the Strategic Petroleum Reserve to cushion the supply shock caused by the Strait of Hormuz closure.\n\nThe reserve, stored in underground salt caverns in Texas and Louisiana, has fallen to 311 million barrels, its lowest level since 1983.\n\nIndustry analysts estimate its operational minimum is between 180 million and 200 million barrels, below which additional withdrawals could risk damaging infrastructure and disrupting pipeline operations.\n\nCalifornia drivers are already starting from a far more expensive baseline. Andy Johnstone for CA Post\n\nMeanwhile, inventories at the nation’s largest commercial oil storage hub in Cushing, Oklahoma, have hovered around 20 million barrels since late June, near operational minimums.\n\n“Commercial stocks are at tank bottom, US SPR stocks are potentially going to approach tank bottom, where is the flexibility to react to additional escalations?” Sean Vale, an energy market analyst at Rystad Energy, told the Financial Times.\n\nWhat do you think?[Be the first to comment.](https://nypost.com/2026/07/25/us-news/as-california-gas-prices-surge-experts-warn-this-spike-is-different/#nypost-openweb-conversation)\n\nThe global supply crunch may be driving prices higher, but California drivers are already starting from a far more expensive baseline.\n\nThe state’s taxes and environmental regulations have created a structural “California premium” that keeps pump prices more than $1.50 a gallon above the national average, meaning every new disruption hits California motorists even harder.\n\nFiled under\n\nSPONSORED STORIES\n\n#### Trending Now  on NYPost.com\n\n*   [![Image 22: Super Bowl champ dead by suicide at 38](https://nypost.com/wp-content/uploads/sites/2/2026/07/newspress-collage-8azfvyfji-1784928300679.jpg?quality=75&strip=all&1784913984&w=260&h=174&crop=1)](https://nypost.com/2026/07/24/sports/former-nfl-guard-jordan-devey-dies-by-suicide-at-38/)This story has been shared 66,154 times.66,154   ### [Super Bowl champ dead by suicide at 38](https://nypost.com/2026/07/24/sports/former-nfl-guard-jordan-devey-dies-by-suicide-at-38/) \n*   [![Image 23: Beloved frontman for iconic NY band dead at 59](https://nypost.com/wp-content/uploads/sites/2/2026/07/135432877.jpg?quality=75&strip=all&w=260&h=174&crop=1)](https://nypost.com/2026/07/25/us-news/lou-koller-frontman-for-new-york-hardcore-icons-sick-of-it-all-dead-at-59/)This story has been shared 41,882 times.41,882   ### [Beloved frontman for iconic NY band dead at 59](https://nypost.com/2026/07/25/us-news/lou-koller-frontman-for-new-york-hardcore-icons-sick-of-it-all-dead-at-59/) \n*   [![Image 24: Video of rumored lawyers caught making out in Central Park goes viral and divides the internet](https://nypost.com/wp-content/uploads/sites/2/2026/07/kissing-comp.jpg?quality=75&strip=all&w=260&h=174&crop=1)](https://nypost.com/2026/07/24/us-news/rumored-lawyers-caught-making-out-in-central-park-goes-viral-and-divides-the-internet/)This story has been shared 38,366 times.38,366   ### [Video of rumored lawyers caught making out in Central Park goes viral and divides the internet](https://nypost.com/2026/07/24/us-news/rumored-lawyers-caught-making-out-in-central-park-goes-viral-and-divides-the-internet/) \n\n## Now on Page Six\n\n Although shipments through the Strait of Hormuz briefly increased after last month's ceasefire between the US and Iran. John McAdorey - stock.adobe.com\n\n The state's taxes and environmental regulations have created a structural \"California premium.\" Pedro Colo for CA Post\n\nYou are viewing**1** of **6**images Previous Image Next Image\n\n## More Stories\n\n### Page Six\n\n### Decider\n\n### NYPost","source_name":"New York Post","source_url":"https://nypost.com/2026/07/25/us-news/as-california-gas-prices-surge-experts-warn-this-spike-is-different/","url":"https://nypost.com/2026/07/25/us-news/as-california-gas-prices-surge-experts-warn-this-spike-is-different/","author":"Daniel Farr","author_name":"Daniel Farr","published_at":"2026-07-25T14:00:00.000Z","publication_date":"2026-07-25T14:00:00.000Z","image_url":"https://images.outbrainimg.com/transform/v3/eyJpdSI6IjRiMTRmOTE4M2ZlYTFhNTRjMWVmYmM4YTRhZTNlNzM4NTE4OTI4OTY3N2U0OTEzNDE2ZWRlYWY2ZThiMThmMmQiLCJ3Ijo5MCwiaCI6NjAsImQiOjEuMCwiY3MiOjAsImYiOjR9.webp","category":"world","topic":"world","tags":[],"political_bias":null,"bias_score":null,"confidence_score":null,"credibility_score":null,"factual_quality":null,"reading_time":5,"word_count":966,"view_count":0,"breaking":false,"breaking_news":false,"ai_analysis":null,"fact_check_status":"unverified","archive_status":"hot","language":null}}