Gas prices continue to rise in Solano County
The average price of unleaded fuel is $6.24 per gallon in Solano County, though motorists in some cities are paying way more.
(Stock image, Graphic by Solano NewsNet)
If it seems like the cost of gas has skyrocketed over the last few weeks, you’re not imagining things.
Over the weekend, the average price of unleaded fuel in California topped $6 a gallon, with many metropolitan areas paying beyond the average price — and most rural communities seeing prices over $7 a gallon.
In Solano County, the average price of unleaded fuel stands at $6.24 a gallon, according to data published on Tuesday by the American Automobile Association (AAA). Motorists in Yolo County are paying slightly less, with the average price of unleaded fuel at $6.14 a gallon; Napa County drivers are paying more, with average regular fuel prices over $6.40 a gallon, AAA said.
Mono County, which shares a border with Nevada, has the most-expensive gas in California at $7.05 per gallon of regular fuel, according to AAA.
Two weeks ago, Solano NewsNet reported that Vallejo had some of the cheapest gas prices in Solano County, with the city’s Costco churning out a gallon of regular fuel for $5.41.
Costco in Vallejo still has the area’s cheapest gas, but motorists will now pay $5.69 per gallon of regular fuel, according to the website GasBuddy.
That price jump is on par with what drivers throughout Solano County are experiencing, with many refueling stations demanding well above the county’s average price of gas.
In Vacaville, a Chevron gas station on Mason Street is charging $6.49 per gallon for regular fuel, while in Rio Vista, drivers who fill up at the Chevron on Rio Vista Boulevard will pay $6.59 for a gallon of regular gas.
Financial experts say Russia’s ongoing war with Ukraine isn’t helping, but gas prices were already expected to climb this summer based on other factors, including a recent economic shift by energy companies away from oil production in order to boost the price of their publicly-traded stock.
Last month, oil giant ExxonMobile said it would spend $30 billion buying back stock from its shareholders after announcing $8.8 billion in quarterly revenue. The repurchase plan was $6 billion more than ExxonMobile’s commitment to invest in more oil production and other areas of its operations.
Energy companies are also not exempt from an ongoing labor shortage that is impacting businesses across the country. In California, this problem was worsened in March when Chevron refinery workers in Richmond organized a labor strike over healthcare costs. The Richmond facility oversees production of more than 245,000 barrels of oil per day. The strike ended on Saturday.
Current and anticipated environmental regulations are also discouraging oil companies from increasing production, analysts say. Instead of investing in oil-based products, some energy companies are looking toward renewable fuels — in line with policies promoted by the Biden administration at the federal level and Governor Newsom in California — but that strategy is causing a severe spike in diesel prices.
Supply is only part of the issue: Demand is the other half of the equation. Gas usage in California is known to spike in the summer months as motorists take to the road for vacation.
Energy analysts say that could cause wild price increases between now and Labor Day, typically the busiest period for California roadways. Some are predicting the cost of regular unleaded fuel could approach, or even top, $10 a gallon in some parts of the Golden State.
Some suggest gas prices could be lowered drastically if the state would eliminate its fuel tax. The tax currently sits at around 51 cents per gallon of gas; it is expected to increase to 54 cents per gallon next month.
Others, including Governor Newsom, are in favor of direct cash payments to California drivers, with Newsom proposing between $400 and $800 in inflation relief.
On Wednesday, California lawmakers announced a tentative budget proposal that included $200 in relief checks to motorists — half of what Newsom suggested, and setting up a potential battle between lawmakers and the governor that could delay any relief payments for months.
The overall tone of the situation is this: Gas prices are bad, they’re going to get worse, and don’t expect any relief anytime soon.