Economic Watch: California motorists hit by soaring gas prices amid attacks on Iran

People fill up their vehicles at a gas station in Los Angeles, California, the United States, on March 9, 2026. (Photo by Zeng Hui/Xinhua)

by Julia Pierrepont III

LOS ANGELES, March 9 (Xinhua) -- When drivers pulled into a Chevron gas station in downtown Los Angeles on Monday, they were stunned to see the price of gasoline on the pump -- 8.21 U.S. dollars for a single gallon.

"No way I can pay those kinds of prices," motorist Betty C told Xinhua. "It's insanely high! I definitely won't be coming there for gas. I see more buses in my future."

While that price represents an extreme example, fuel costs at gas stations across California have also been soaring as global tensions push oil prices higher.

According to the American Automobile Association, a privately held non-profit national member association and service organization with over 60 million members, the statewide average for regular gasoline in California on Monday was about 5.20 dollars per gallon, the highest in the country.

That figure marks an increase of roughly 73 cents from a month ago. Premium gasoline on Monday averaged about 5.60 dollars per gallon statewide, while diesel reached 5.96 dollars.

By comparison, the national average price for regular gasoline stood at roughly 3.48 dollars per gallon.

Fuel costs in California have been trending upward for days. AAA data showed that just one week earlier, drivers in the Golden State were paying an average of 4.66 dollars per gallon.

Higher increases are also notable in coastal communities. In Santa Barbara, the average price for regular gasoline reached 5.12 dollars per gallon, up from 4.57 dollars a week earlier.

Other California counties are seeing even steeper prices. According to AAA, average gasoline prices in San Luis Obispo, Monterey, Sonoma, San Mateo, Inyo, Marin and Humboldt counties range from approximately 5.29 dollars to 5.74 dollars per gallon.

Seasonal factors may also be contributing to the increase. Gas prices often rise during the spring as demand grows ahead of the summer travel season and refineries switch to more expensive summer-blend fuel required under environmental regulations.

However, analysts and political leaders have argued that geopolitical tensions are the key factor behind the latest surge.

In a series of online posts since Sunday, California Governor Gavin Newsom attributed the spike in gas prices to the Trump administration's attacks on Iran, saying they have pushed up crude oil prices and increased costs for drivers across the United States.

"California gas prices were stable for nearly two years after the state cracked down on price spikes ... Then Trump started a war with Iran -- and prices began skyrocketing NATIONWIDE!" the governor's office wrote on its official account on X page on Monday.

Some analysts warn that prices could climb even higher if global oil markets remain volatile. Polymarket, a global prediction market, suggests the national average price for gasoline could reach five dollars per gallon by the end of March. Under that scenario, California's statewide average might soar past seven dollars per gallon.

For now, drivers across California continue to face some of the highest fuel prices in the country, with prices likely to rise further if global tensions and supply constraints persist. ■

A man fills up his vehicle at a gas station in Los Angeles, California, the United States, on March 9, 2026. (Photo by Zeng Hui/Xinhua)

Gas prices are displayed at a gas station in Los Angeles, California, the United States, on March 9, 2026. (Photo by Zeng Hui/Xinhua)

Gas prices are displayed at a gas station in Los Angeles, California, the United States, on March 9, 2026. (Photo by Zeng Hui/Xinhua)

Gas prices are displayed at a gas station in Los Angeles, California, the United States, on March 9, 2026. (Photo by Zeng Hui/Xinhua)