Rising Gas Prices Show West Coast Volatility

SAN MATEO, CA -- It may be time to get that Prius or work from home. Gas prices have risen 19 cents in one month in California due to a number of factors. The average price for a gallon of gas is $3.80 in California, the second highest price in the nation behind Hawaii up 4 cents more.

In San Mateo at a station near Highway 101 , the price for regular at $3.49 could be considered a bargain.

The reasons for the recent spike vary, California Energy Commission Senior Fuels Specialist Gordon Schremp told Patch.

The supply is reduced, while the demand is growing. Our main suppliers, Iran and Venezuela, have their own separate issues.

"We're seeing a decline in exports. There are difficult conditions in Venezuela. They're down by a million barrels, and they have a lack of workers," he said.

With Iran, the threat of sanctions to be imposed next month didn't help the situation.

A pipeline explosion in British Columbia also failed to help matters.

Meanwhile, the United States consumes at a soaring rate.

In California, markets considered metropolitan areas are forced to pick up the tab to transport to their neighboring counties. It costs more to perhaps ferry a boat of refined crude in opposed to just trucking it.

The hope is no other event such as a terrorist attack that throws the market out of whack piles on to the issue. There is an emergency stock from Southeast Asia and Europe if need be, but even that is limited.

"The September switch-over to the winter-blend gas ushered in cheaper prices compared to summer, but that drop was short lived," AAA spokeswoman Jeanette Casselano said. Consumers have been spoiled since zig-zagging gas prices have not been experienced in four years.

--Image via Sue Wood, Patch