Gasoline inventories in California have fallen to record lows as fuel prices surge across the United States, driven by global supply disruptions linked to tensions in the Middle East and the effective closure of the Strait of Hormuz.
Motorists in California are currently paying an average of $5.86 per gallon, the highest in the country, compared with the national average of $4.09, according to the American Automobile Association. Analysts warn that prices could rise further as the full impact of disrupted imports has yet to reach the state.
California relies heavily on imported refined fuels, particularly from Asia, making it one of the most exposed U.S. regions to global supply shocks. The Strait of Hormuz, through which about one-fifth of global oil and gas flows, has been under heightened pressure due to the ongoing war involving Iran.
Statewide gasoline inventories averaged 9.44 million barrels for the four weeks ending April 10—the lowest level on record in data maintained by the California Energy Commission dating back to 2005. These stocks include California-blend gasoline, blending components, and imported fuel.
“The Energy Commission is in close communication with all in-state refiners to ensure adequate transportation fuels supply during this volatile period of supply contraction due to the effective closing of the Strait of Hormuz,” said agency spokesperson Niki Woodard.
The average price increase of 26% since the start of the Iran conflict reflects both global crude disruptions and California’s higher production costs, including environmental regulations and taxes tied to its low-emission fuel standards.
Analysts say the full impact of reduced imports has not yet been reflected in the market due to shipping delays from Asia. “This will mark the point at which the import shock becomes fully visible in terminal supply and, ultimately, at the gas pump,” said a report by the University of Southern California.
Energy consultancy Rystad Energy warned that inventory levels could fall further in the coming weeks as shipments decline.
California, once a major oil-producing state, has become increasingly dependent on imports after refinery closures that reduced domestic capacity by roughly 20%. Crude oil inventories have also dropped more than 23% year-on-year.
Despite the pressure, state officials say there is currently no immediate supply shortage expected, with sufficient inventories projected to last through mid-May. California consumes approximately 36 million gallons of gasoline per day.