Gas prices in California could hit nearly $8 a gallon, experts say

SACRAMENTO COUNTY, Calif. (KMAX/KOVR) – Gas prices continue to rise around the country as the state of California looks to see a price of $8 a gallon within the next few years.

At Ernie’s General Store and Deli in Stockton, customers looking to buy gas are not used to seeing a price per gallon that begins with the number four.

The store’s owner, Ernie Giannecchini, said it was just a week before when prices were below $4.

“They’re just pushing the price up, pushing it up, pushing it up,” he said.

Giannecchini said he typically has the lowest gas prices in the area. However, staying at his normal, rock-bottom prices has become nearly impossible.

“The price of gas since this weekend went up for me 50 cents a gallon since last Friday,” he said. “And it’s going up another 5 to 7 cents tonight, with no end in sight.”

Michael Mische is an associate professor of professional practice at the University of Southern California. He recently released a new study that has been making headlines due to one finding in particular.

He said gas prices could potentially increase up to 75% by the end of 2026 as the state prepares to lose nearly a fifth of its oil refining capacity.

“But the key to concentrate on is those regulatory cost components, they’re going up and that’s something that the state can do something about today. If it chose to do so,” he said.

Some of the regulatory costs include making California gas that is up to the state’s standards, as the fuel is much cleaner than what is used in the rest of the country.

A fire that occurred at a Martinez refinery in February along with a fire that took place recently at the Valero refinery in Benecia are being put into perspective by an oil analyst Tom Kloza, who says oil supply is constrained.

“You can get some gasoline from other parts of the world, and perhaps from Washington State. But you’re just far removed from it,” he said. “So I think you’re going to have to buckle down and realize that Northern California in particular, and California as a state is going to pay.”

This is a reality that Californians, including Giannecchini, are living out now.

“My prices have to go up because I’m at rock-bottom prices, I’m just basically at my cost right now, and I usually try to be the lowest price in the area, in Stockton,” he said. “Right now I’m not absolutely the lowest, but I have a lot of loyal customers.”