California Gas Prices Soar Amid Iran Conflict and Refinery Closures

California drivers are facing significantly higher gas prices as the conflict in Iran continues to disrupt global oil supplies and as local refinery closures tighten the state’s fuel market. The average gas price in California reached $5.52 per gallon as of Monday, March 17, 2026, according to the American Automobile Association (AAA).

Rising Prices Driven by Global Conflict and Local Factors

The escalating tensions in Iran have set a strain on the global oil supply, contributing to a surge in prices. Since the US and Israel launched attacks on Iran on February 28, 2026, the price of oil has surged to over $100 a barrel for the first time in nearly four years [1]. Approximately 20% of the world’s oil is shipped through the Strait of Hormuz, but the channel has been largely closed for the past week, further exacerbating the supply issues. Currently, around 9 million barrels of oil per day are off the market due to attacks on facilities or producers taking precautionary measures [1].

Adding to the pressure, two California refineries – Phillips 66 in Southern California and Valero in Benicia – have recently closed or are scheduled to close, reducing the state’s refining capacity. Only nine refineries remain in California that produce consumer gas [3]. This limited capacity means tighter supply and increased vulnerability to price fluctuations.

Price Comparison and Trends

As of March 17, 2026, California’s average gas price of $5.52 per gallon is considerably higher than the national average of $3.63 [4]. Prices have jumped 32 cents in a week and 94 cents in a month [3]. This surge echoes similar price spikes seen in 2022 when Russia invaded Ukraine, briefly pushing statewide averages above $6 per gallon [2].

Tips for California Drivers to Save Money

While the situation is challenging, California drivers can take steps to mitigate the impact of rising gas prices:

• Shop Around: Utilize websites like GasBuddy and the AAA mobile app to compare prices at different gas stations in your area. Gas stations located near highways typically charge higher prices. [3]
• Take Advantage of Discounts: Enroll in fuel reward programs like Shell Fuel Rewards to earn discounts per gallon. Some grocery stores and retailers with affiliated gas stations also offer lower prices. [3]
• Drive Wisely: Minimize air conditioning use, avoid idling, and plan trips to reduce mileage and avoid peak traffic hours. [3]
• Carpool: Carpooling can save money on gas and allow access to high-occupancy vehicle lanes, reducing commute times. [3]
• Maintain Your Vehicle: Regular vehicle maintenance, including addressing “check engine” light issues, ensuring proper tire inflation, and using the correct motor oil, can optimize fuel economy. [3]

Looking Ahead

The future of California gas prices remains uncertain, heavily dependent on the evolution of the conflict in Iran and the stability of global oil supplies. The closure of refineries and the seasonal transition to summer-blend gasoline will likely continue to put upward pressure on prices. Drivers should remain vigilant and employ fuel-saving strategies to navigate this challenging period.