by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
With the recent US/Iran MOU signed, there is an immediate ceasefire extension, the reopening the strait for commercial vessels, and the lifting of the U.S. naval blockade
Gas prices have dropped below $4.00 per gallon according to AAA across America after President Donald Trump signed the MOU with Iran. As the announcement was being made, oil prices fell sharply almost immediately.
But California’s gas prices remain high – $5.64 per gallon on average, and still higher than Hawaii”s gas prices. Hawaii has to tanker in all of its oil, whereas California could be self-sustaining if only the state allowed oil companies to drill and refine.
California imports more than 30% of its oil from the Middle East. The total foreign crude imports amount to approximately 290 million barrels, which is about 61% of California’s total refinery supply, according to California Energy Commission.
The national average price per gallon of diesel is more than $5.13, according to AAA. And in California, you’ll pay $6.88 per gallon of Diesel. Ouch.
Gas prices are expected to drop across all 50 states as the Iran deal that calls for the reopening of the critical Strait of Hormuz so oil can flow once again.
Indiana has the lowest gallon of gas at $3.39 per gallon.
