Here’s why gas prices ‘keep going up’ in Sacramento. Is there an end in sight?

Frustrated at the gas pump? You’re not the only one.

As of Tuesday, Sacramento’s average gasoline price was roughly $5.13 per gallon for regular unleaded fuel, about 37 cents more than one month ago, according to AAA.

One year ago, gas prices in the capital city averaged $4.73 per gallon for regular gas.

Your total at the pump is likely to increase even more as the weather continues to warm, according to John Treanor, a AAA spokesperson for Northern California.

“Every year you start seeing (gas prices) go up,” he told The Sacramento Bee via phone on Tuesday. “They’re always going to keep going up as demand goes up.”

Traffic moves southbound on Highway 99 away from Highway 50 on in June 2022. Gas prices are on the rise in March 2024.
Traffic moves southbound on Highway 99 away from Highway 50 on in June 2022. Gas prices are on the rise in March 2024.

Why are gas prices increasing?

Gas prices typically rise in the spring, reaching a peak in the summer when the demand is high and gasoline formulations are more expensive, the U.S. Energy Information Administration said.

Treanor said the current increase in fuel costs can be traced back to a climate that’s warmed earlier than usual, global oil prices and supply-and-demand issues over winter’s conservative fuel supply.

“Uncertainty of the impact of Ukraine’s targeting of Russia’s oil infrastructure likely spiked oil prices recently,” AAA spokesman Andrew Gross wrote in a March 28 statement.

Treanor said global oil prices have increased this spring to more than $80 per barrel. That accounts for roughly 60% of consumer fuel prices.

You’ll be charged even more to fill your tank when summer blend gasoline hits the pumps. This type of gasoline is formulated to prevent excessive evaporation when temperatures warm.

“We’ve changed the way we’ve worked and lived partly because of gas prices,” Treanor said.

That’s meant more people carpooling, working from home or swapping gas-powered cars for electric vehicles.

“People are starting to think ‘What is the future?’ and ‘What is my future as a driver or a car owner?’ “ Treanor said.

How high have fuel costs gotten?

Sacramento is no stranger to staggering gasoline prices.

In June 2022, gas prices in Sacramento and across the United States skyrocketed to an all-time high.

In Sacramento, drivers were paying roughly $7.07 per gallon for diesel fuel and approximately $6.44 per gallon for regular unleaded gasoline, AAA states.

Several other California cities — including Merced, Napa, Oakland and Redding — saw similar record high averages.

Why is gas so expensive in California?

It’s no secret that California is home to one of the most expensive gas markets in the country.

Last week, the Golden State led AAA’s list of the nation’s “top 10 most expensive markets” at an average of $5.02 per gallon for regular unleaded fuel.

Hawaii trailed closely behind with $4.69 per gallon of gas, along with Washington ($4.49 per gallon) and Nevada ($4.38 per gallon).

Oregon, Alaska, Illinois, Arizona, Utah and Washington D.C., also made the list.

“I could expect some frustration at the pump when you see prices that are hovering around $5 a gallon,” Treanor said. “California is one of the most expensive markets in the country.”

As of Friday, the statewide average gasoline price was $5.12 per gallon for regular unleaded fuel, about 32 cents more than a month ago and roughly 29 cents more than a year ago, according to AAA.

The national average is roughly $3.54 per gallon for regular unleaded fuel.

“When it comes to refining and creating gas out of oil ... combined with fuel taxes, you start to see why California may be more expensive than most states,” Treanor said.

Population size, gas demand and fuel transportation also play roles in what you pay at the pump.

Sacramento resident Jay Lor pumps gas on Monday, June 13, 2022, at the Shell station on Del Paso Road in Natomas. Gas prices are again on the rise in March 2024.
Sacramento resident Jay Lor pumps gas on Monday, June 13, 2022, at the Shell station on Del Paso Road in Natomas. Gas prices are again on the rise in March 2024.

Where is the cheapest gas in the Sacramento area?

Here were the top 10 gas stations offering the cheapest regular fuel prices in the Sacramento area as of Tuesday afternoon, according to GasBuddy.

Costco | $4.54

1800 Cavitt Drive, Folsom

Sam’s Club | $4.54

2495 Iron Point Road, Folsom

Xpress | $4.55 (cash)

500 E Bidwell St., Folsom

Fastrip | $4.55 (cash)

8061 Florin Road, Sacramento

Costco | $4.57

7400 Elk Grove Blvd., Elk Grove

Costco | $4.57

7981 E Stockton Blvd., Sacramento

Great Gas | $4.57 (cash)

2849 Watt Ave., Sacramento

Sam’s Club | $4.57

8250 Power Inn Road, Sacramento

Walmart | $4.57

8901 Gerber Road, Sacramento

Kwik Serv | $4.57 (cash)

5040 El Camino Ave., Carmichael

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