California Gas Prices Soar Amid Ongoing War

AAA data shows average cost per gallon up 35% since start of conflict

Apr. 1, 2026 at 9:58pm

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As the war in Iran continues, gas prices are skyrocketing across California, with the average cost per gallon jumping 35% since the start of the conflict according to AAA data. The statewide average is nearing $6 per gallon, with prices in the Bay Area's major cities like San Jose, Oakland, and San Francisco even higher.

Why it matters

The sharp rise in gas prices is putting a major financial strain on Californians, with experts estimating the additional surcharges above taxes and environmental fees have cost state residents over $60 billion since 2015. The California Energy Commission has created a new division to investigate the reasons behind these high gas prices.

The details

AAA data shows the national average for a gallon of gas hit $4 on Tuesday, the highest level since the 2022 Russian invasion of Ukraine. In California, prices are even higher, with the statewide average nearing $6 per gallon. Prices in San Jose and Oakland are close to that $6 mark, while San Francisco tends to see even higher prices at the pump. Professor Severin Borenstein of UC Berkeley's Energy Institute at Haas says California's taxes and environmental fees account for part of the higher prices, but a significant gas surcharge is also a major factor, costing Californians an estimated $5 billion to $7 billion per year.

  • The national average for a gallon of gas hit $4 on Tuesday, April 1, 2026.
  • California's additional gas payments above taxes and environmental costs have amounted to over $60 billion since 2015.

The players

Severin Borenstein

A professor at UC Berkeley's Energy Institute at Haas who studies California's gas prices and surcharges.

California Energy Commission

The state agency that recently created a new division to investigate the reasons behind California's high gas prices.

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What they’re saying

“Since 2015, California's additional payments for gasoline, above what's justified by taxes and environmental costs, amount to over $60 billion. So this is big money, it's costing Californians $5 billion to $7 billion a year.”

— Severin Borenstein, Professor, UC Berkeley Energy Institute at Haas

What’s next

The California Energy Commission's new division is expected to release a report on its findings regarding the state's high gas prices in the coming months.

The takeaway

The ongoing war in Iran has led to a sharp spike in gas prices across California, with the average cost per gallon jumping 35% since the start of the conflict. While taxes and environmental fees play a role, experts say a significant gas surcharge is the primary driver of these high prices, costing Californians billions each year. The state is now taking steps to investigate the reasons behind these surcharges in an effort to provide relief for drivers.