- Rising gas prices have reached $7.29 in parts of California
- That price per gallon is higher than the federal minimum hourly wage
- Other parts of the US have also fallen victim to rising fuel costs
Rising gas prices have skyrocketed to as much as $7.29 per gallon in some parts of California – which is above the current national minimum hourly wage.
While the average price for a gallon of gasoline varies from state to state, motorists in one Silicon Valley city are facing particularly exorbitant rates that cost them nearly $150 for a full tank.
The Chevron gas station in Menlo Park was exposed Sunday by a stunned customer who posted on X that the price per gallon was four cents “above the federal minimum hourly wage.”
The federal minimum wage is currently $7.25, while in California it was set at $16 early this year. Fast food workers received a raise to $20 in April.
The average price of a gallon of regular gasoline in California is $5,423, making it by far the most expensive state to fuel your car, with the highest being at least $7.29.
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Hawaii ranks second, with an average price of $4,803, followed closely by Washington ($4,656), Nevada ($4,615) and Oregon ($4,428).
The only other states with averages above $4 are Alaska ($4,370) and Arizona ($4,112)
States on the West Coast have much higher gas prices because drivers pay some of the highest fuel taxes in the country, according to the Federation of Tax Administrators.
Southern states have much lower gas prices on average. Mississippi has the lowest average price per gallon at $3,098 and neighbors Alabama ($3,263), Louisiana ($3,166), Arkansas ($3,223) and Tennessee ($3,272) are among the cheapest places to buy gasoline.
Gas prices in Midwestern states hover around the lower end of the price spectrum, with Wyoming, Nebraska, South Dakota and North Dakota all falling between the national retail price range of $3,415 to $3,292.
In March, it was reported that motorists were being charged an average of $52 to fill up on a tank of gas after prices at the pump rose to $3.48 per gallon.
Gas costs are higher than a year ago, after months of a steady downward trajectory.
It comes after fuel was identified as a key driver of inflation, which proved unexpectedly persistent in 2024.
AAA figures show the national average price for regular gas rose to $3.48 per gallon, up from $3.45 a year ago. It means a 15-gallon fuel tank would cost $52.20 to fill up.
Costs at the pump have risen due to recent drone attacks on oil refineries in Russia, which in turn have driven up petrol and oil prices
In March, it was reported that motorists were being charged an average of $52 to fill up on a tank of gas after prices at the pump rose to $3.48 per gallon
And it is the first time that gas prices will increase on an annual basis in 2024.
AAA spokesman Andrew Gross said of the rising prices: “This is the time of year when we normally see pump prices rise.
“And while prices have been quite low so far, they should start to accelerate and move higher very soon.”
Costs at the pump have risen due to recent drone attacks on oil refineries in Russia, which in turn have driven up gasoline and oil prices.
Tom Kloza, global head of energy analysis at the Oil Price Information Service, said CNN: ‘It seems pretty clear that the Ukrainians have discovered that the best way to attack Vladimir Putin is to attack him in his pocket.
‘That means shutting down refineries. It’s a wild card that we’ve never had to deal with before.”
According to the Consumer Price Index (CPI), gas prices increased by 4.3 percent between January and February.
Inflation is proving to be one of the most controversial issues facing President Biden’s re-election.
But Mukesh Sahdev, head of oil trading and downstream research at Rystad Energy AS, warned that gas prices could still reach multi-year highs.
He said that recently Bloomberg: ‘There’s not much President Biden can do in time for the election if this happens.
“Strategic oil reserves are low, and there are few levers for the U.S. government to lower gasoline prices.”