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Gas prices have surged to $7.29 per gallon in certain areas of California, surpassing the current national hourly minimum wage.
The cost of a gallon of gas can vary from state to state, but drivers in a specific town in Silicon Valley are encountering exceptionally high prices, amounting to nearly $150 for a full tank.
A startled customer revealed on Sunday that the Chevron gas station in Menlo Park was charging four cents more per gallon than the federal hourly minimum wage.
The federal minimum wage is currently $7.25, while in California it was set to $16 at the beginning of the year. Fast food workers were given a bump to $20 in April.
The average price of a gallon of regular gas in California is $5.423 – making it by far the most expensive state for filling up your car with fuel, with the highest reaching at least $7.29.
Hawaii rates second, with an average price of $4.803, closely followed by Washington ($4.656), Nevada ($4.615) and Oregon ($4.428).
The only other states with averages above $4 are Alaska ($4.370) and Arizona ($4.112)
States on the West Coast have far higher gas prices because drivers pay some of the highest state fuel taxes in the country, according to the Federation of Tax Administrators.
Southern states average far lower prices on gas. Mississippi has the lowest average price per gallon at $3.098 and its neighbors Alabama ($3.263), Louisiana ($3.166), Arkansas ($3.223) and Tennessee ($3.272) are amongst some of the cheapest places to buy gas.
Gas prices in Midwestern states hover around the lower end of price spectrum, with Wyoming, Nebraska, South Dakota and North Dakota all falling in between the national retail price range of $3.415 to $3.292.
In March, it was reported that motorists were facing an average of $52 to fill up a tank of gas after prices at the pump soared to $3.48 a gallon.
Gas costs are higher than they were a year ago, after months of being on a steady downwards trajectory.
It comes after fuel was identified as a key driver of inflation which has proved unexpectedly sticky in 2024.
Figures from the AAA show that the national average price for regular gas climbed to $3.48 a gallon, up from $3.45 a year ago. It means a 15-gallon fuel tank would cost $52.20 to fill up.
Costs at the pump have been pushed up by recent drone attacks on oil refineries in Russia which have in turn boosted gasoline and oil prices
In March, it was reported that motorists were facing an average of $52 to fill up a tank of gas after prices at the pump soared to $3.48 a gallon
And it is the first time that gas prices have been up on a year-on-year basis in 2024.
AAA spokesman Andrew Gross said of rising prices: ‘This is the time of year we normally see pump prices start to rise.
‘And while prices have been rather pokey so far, they should begin to accelerate and move higher very soon.’
Costs at the pump have been pushed up by recent drone attacks on oil refineries in Russia which have in turn boosted gasoline and oil prices.
Tom Kloza, global head of energy analysis at the Oil Price Information Service, told CNN: ‘It appears pretty clear that Ukrainians have discovered the best way to attack Vladimir Putin is to attack him in his wallet.
‘That means knocking out refineries. It’s a wildcard we’ve never had to deal with before.’
According to the Consumer Price Index (CPI), gas prices had shot up 4.3 percent between January and February.
Inflation is proving to be one of the most contentious issues facing President Biden’s re-election.
But Mukesh Sahdev, head of oil trading and downstream research at Rystad Energy AS, warned gas prices could still hit a multi-year high.
He recently told Bloomberg: ‘There’s not a lot President Biden can do in time for the election, if this happens.
‘Strategic petroleum reserves are low, and there are few levers for the US government to pull to lower gasoline prices.’
