Gas prices have rebounded in the Bay Area and are on track to exceed pre-pandemic levels as California continues to reopen, vaccinations increase and the economy slowly begins to recover, according to analysts.
The average price of gas in San Francisco as of Thursday was $3.54 per gallon, according to GasBuddy.com, a tech company that collects data on gas prices throughout North America. That’s about 7 cents less than a year ago before the coronavirus pandemic roiled the U.S.
But petroleum analysts say that’s soon to change.
“It’s just a matter of time before prices [in the U.S.] will be higher than a year ago,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
Gas prices dropped nationally in March when state and federal officials issued stay-at-home orders in response to the COVID-19 pandemic. The lowest average price per gallon for California during the pandemic was $2.70, in April.
The average price of gas in California on Thursday was the highest of all U.S. states at $3.43 per gallon, down 10 cents from a year ago and up about 16 cents from January. The average per-gallon price nationwide on Thursday was $2.46.
Gas prices in California generally lead the nation because its state taxes on gasoline are high, said De Haan. California also has its own, cleaner blend of gasoline that is offered by relatively few supply sources, according to the U.S. Energy Information Administration.
De Haan said prices will rise as more people receive the COVID-19 vaccine and people start to step out after being cooped up in their homes.
Demand for gasoline is expected to continue to increase across the country. At the beginning of the pandemic, De Haan said, demand plummeted about 60%, which caused the Organization of the Petroleum Exporting Countries to cut production.
“Part of the reason why prices have gone up is because demand is rising now faster than production,” said De Haan, adding that OPEC is slowly increasing production to keep the increase in prices under control.
The flow of traffic on U.S. Highway 101, Thursday, Jan. 21, 2021, in San Francisco, Calif.
Santiago Mejia / The ChronicleThe U.S. has also produced less oil per day compared to a year ago, from about 13 million barrels of oil a day to 11 million, De Haan said.
“It has nothing to do with politics and the elections and who’s in the White House,” De Haan said. “This has everything to do with an economy that’s recovering from a pandemic.”
Oil producers in California are also preparing to switch production from the winter-blend gasoline to the summer-blend in April. Summer gasoline can cost up to 15 cents more per gallon, but it is less volatile and doesn’t evaporate as easily, De Haan said. With the summer-blend, individuals could see one or two miles per gallon more than winter gasoline, he said.
Here are the average gas prices in each Bay Area county as of Feb. 4, according to GasBuddy.com:
San Francisco: $3.62/gallon
Alameda: $3.43/gallon
Contra Costa: $3.46/gallon
Marin: $3.62/gallon
Napa: $3.53/gallon
San Mateo: $3.49/gallon
Santa Clara: $3.50/gallon
Sonoma: $3.51/gallon
Solano: $3.38/gallon
Jessica Flores is a San Francisco Chronicle staff writer. Email: jessica.flores@sfchronicle.com. Twitter: @jesssmflores
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Rebounding gas prices in Bay Area will soon surpass pre-pandemic levels, analysts say - San Francisco Chronicle
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