California drivers might be in for a challenging summer with rising gas prices, as GasBuddy has indicated that this season could be the most unpredictable one in years.
Analyst Patrick de Haan from GasBuddy expressed concerns about the potential volatility of gas prices due to a mix of global tensions and local supply issues.
“The situation we are in is completely unpredictable,” De Haan noted in an interview. He highlighted ongoing discussions surrounding Iran and the significance of the Strait of Hormuz, a crucial shipping route for oil.
This warning follows acknowledgments from officials in Gov. Gavin Newsom’s administration that gas prices were on the rise even before tensions with Iran escalated.
Earlier this week, Shiva Gunda, vice chair of the California Energy Commission, informed lawmakers that the state has sufficient oil and gasoline supplies to satisfy demand for the next seven to eight weeks. However, he mentioned that beyond that timeframe, the future of gas prices remains uncertain.
Gunda also mentioned that international suppliers are likely to keep sending fuel to California because local drivers are typically willing to pay more during times of national fuel shortages.
De Haan echoed this sentiment, but cautioned that even if global conflicts were resolved, immediate relief for Californians at the pump might still be out of reach.
“The closure of these two refineries over the past year has changed the situation in California,” he said. “It’s still a new era for the state to depend on countries as far away as Asia to meet its demand, which will be challenging moving forward.”
The Newsom administration criticized oil companies for profiting during this time, particularly amidst the conflict involving California drivers and Iran.
De Haan, however, attributed the situation to California’s environmental policies and the closure of refineries, which have altered the landscape of the state’s fuel market.
“California is now creating a closed-loop system where the remaining refiners are finding it easier to make a profit,” he explained.
