The average price of regular gasoline in San Diego County tops $5 for the first time

SAN DIEGO (KUSI) – The average price of a gallon of self-serve regular gasoline in San Diego County topped $5 for the first time Friday, thanks to the largest daily increase since July 13, 2015, rising 12.9 cents to $5.104.

On Good Morning San Diego, KUSI’s Allie Wagner was out in Hillcrest where gas is nearing 6$/gallon for premium gas, this is the highest priced gas in San Diego County.

The average price has risen 29 of the past 32 days, increasing 48 cents, including 8 cents Thursday, according to figures from the AAA and Oil Price Information Service. It is 29.2 cents more than one week ago, 43.8 cents higher than one month ago and $1.353 greater than one year ago.

Oil industry analysts attribute the price spike to the possibility of a supply shortage because traders, shippers, insurance companies and banks are avoiding Russian oil transactions for fear of running afoul of Western sanctions.

The end of the price spike is “largely dependent on world events and oil prices, as well as California’s gasoline supply issues which often tend to occur in the spring months,” said Marie Montgomery, a public relations specialist with the Automobile Club of Southern California.

Later in the morning, Patrick De Haan, head of petroleum analysis at Gas Buddy, partnered with KUSI to see what his predictions of gas prices will be in the next month or two.

He predicts that the price of gas will be around $5.50 “in the next month or two”.

Crude oil costs account for slightly more than half of the pump price, according to the U.S. Energy Information Administration. The rest of the price includes the other components of gasoline, production costs, distribution costs, overhead costs for all involved in production, distribution and sales, taxes and carbon offset fees in California paid by the refineries.

The price of a barrel of Brent crude for May delivery on the Intercontinental Exchange dropped $2.47 to $110.46 Thursday, one day after rising to its highest settlement value since June 27, 2014, $112.93. Brent crude is the global oil benchmark, accounting for approximately 80% of the world’s crude oil.

Categories: Good Morning San Diego, Local San Diego News