California gas averages $5.40 a gallon ahead of July 4, up $0.83 from a year earlier
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California gasoline prices rose to $5.40/gal (+$0.83 YoY) ahead of July 4 as Iran-war-related supply tightening lifted U.S. fuel costs, amplified locally by a higher state excise tax, constrained refining capacity, and seasonal demand. The story signals near-term strength in refined-product margins and crude demand sensitivity, reinforcing an energy-led inflation impulse and keeping commodity markets focused on geopolitical supply disruption risk.
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Ahead of July 4, California’s average gasoline price has climbed to $5.40 per gallon, up $0.83 from $4.57 a year ago, according to the American Automobile Association. Nationwide prices have also risen, with the national average at $3.84 per gallon, as the war in Iran has tightened global oil supplies. California’s increase in its gasoline excise tax to 63.4 cents per gallon on July 1, along with limited local refining capacity and stronger seasonal demand, has added to the state’s outsized jump. Prices in areas including Los Angeles, San Francisco and Mono County are running well above the national average.
