Gas prices in the Bay Area are steeper than ever before, according to reports released by AAA.
Listen to the latest episode of "Bay Current" below.
"It's around five bucks a gallon," reporter Matt Bigler told KCBS Radio's "Bay Current" on Friday. "They used to say, when gas prices are over $3.50, it's an issue. When it's over $5, it's the only issue."
He said that gasoline has been impacted by inflation issues in the economy, but that’s only part of what’s driving the price surge. "The main reason gas prices are going up is because of oil prices," Bigler added. "Crude oil prices are over $80 a gallon and that’s the highest they've been in over seven years."
In California, the prices are higher than in any other state in the nation, approximately $1.30 more expensive on average for one gallon of gas.
California has higher taxes and environmental fees than other states, but if you subtract those fees, there are still 30 cents curiously unaccounted for.
"The mystery gasoline surcharge explains more than 30 cents of the price of gasoline," said Severin Borenstein, Professor of Business Administration at the Haas School of Business at UC Berkeley. "We don't know what's causing it, but we are more out of line with the rest of the country than we were a few months ago."
California's average unleaded gasoline price is $4.70, which is the highest ever recorded.
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