SAN FRANCISCO (KRON) — With tensions still very high in the Russia-Ukraine crisis, gas prices are likely to go up even higher.
The national average for a gallon of gas has risen 20 cents over the past month.
But, is this “possible war” an opportunity for some price gouging at the pump?
One of those politicians keeping a close eye on the oil market is Bay Area Congressman John Garamendi.
Garamendi suspects there is already some price gouging and is calling on Congress to schedule a hearing to look into it.
“For sure, they will blame it on all this trouble in Europe, but I don’t buy that,” Garamendi said. “I would call for a full-scale investigation. I would call the CEOs of the oil industry into a hearing and have them explain exactly why Americans are paying $4.70 to $5-dollars for gasoline.”
“The price in the Bay Area (was) also up about 13 cents per gallon in the past month. The price increases are going to start picking up steam,” said Patrick De Haan who is the head of petroleum analysis at GasBuddy.com.
That is because the annual spring surge in gas prices is just around the corner. That combined with the Russian-Ukrainian conflict, and the forecast is real pain at the pump in the coming weeks and months
“It’s essentially 3-different factors that conspire, basically to comingle with each other to push prices up significantly,” De Haan said. “Those three factors being the switch to summer gasoline. California has its own special blend. That switch over is starting in Southern California. It will progressively move to Northern California. That type of gasoline tends to be anywhere from 30-cents more per gallon expensive.
“In addition, it comes at a time of year when gasoline demand goes up nationally as we get closer to March and April. Spring break travelers hit the road. That leads to higher demand. At the same time that is happening, refineries are also starting seasonal maintenance, which happens ahead of the summer driving season. Those 3-factors alone usually boost gas prices 25-cents to as much as 75-cents per gallon between March and Memorial Day. Then adding in the situation with Russia. It’s a recipe that gas prices in the Bay Area could get deep into the 5-dollar a gallon territory by Memorial Day weekend.”
Congressman Garamendi’s office says he is having internal discussions with committees of jurisdiction and requesting they convene a hearing on the topic of price gouging.