BOSTON — San Francisco this week became the first major U.S. city to reach an average gas price of $5 per gallon, according to GasBuddy. Prices have continued to increase in the area since October, when San Francisco first broke its all-time record high of $4.73 per gallon.
The majority of U.S. states and cities have seen price increases recently, with the national average rising to $3.70 per gallon on March 3 as tensions in Russia and Ukraine have mounted, putting pressure on oil markets worldwide. California cities typically feel extra pressure at the pump during price increases, as the state taxes gasoline at 51.1 cents per gallon, the highest of any state gas tax in the country, says GasBuddy. Other factors, such as the carbon management program and high cost of doing business, send prices in the Bay Area particularly high, the gasoline-information technology company said.
“San Francisco just made history as the first-ever U.S. city to reach an average of $5 gas,” said Patrick De Haan, head of petroleum analysis for GasBuddy, Boston. “And unfortunately, this record is likely just the beginning of a larger trend of price spikes to come to California and the entire country. While Bay Area prices might be leading the way for now, there’s a possibility here for the entire state of California to follow suit, with gas prices potentially rising over the $5 mark this spring.”
GasBuddy said it recommends drivers in the Bay Area compare gas prices before filling up to save money, and to not fall victim to over-priced stations in popular tourist areas.
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