Scott Colangelo, chairman and managing partner of Prime Capital Financial, shares his bullish outlook for the markets on ‘Varney & Co.’ apart.
For the first time ever, average diesel prices in San Francisco have risen above $8 per gallon, according to new data from GasBuddy — marking an unprecedented milestone for any U.S. city.
The jump comes when the war with Iran is driving global oil prices higher, underscoring the volatility in fuel markets and how California-specific factors – such as stricter regulations, higher taxes and limited supply – can drive prices well above the national average.
San Francisco has long had some of the highest fuel costs in the country, but crossing the $8 threshold for diesel represents a new benchmark — even for a state accustomed to higher energy prices.
BUYING A HOUSE IS BECOMING EVEN MORE EXPENSIVE AS THE IRAN WAR RAISES MORTGAGE PRICES
A person picks up the nozzle for diesel fuel at a gas station. (Rebecca Noble/Bloomberg/Getty Images)
Diesel, which powers much of the country’s freight, shipping and public transportation systems, is particularly sensitive to refinery capacity and global supply disruptions.
The wave is expected to ripple beyond the Bay Area. Higher diesel costs often translate into higher transportation and shipping costs, which can ultimately drive up prices for goods and services across the country.
Meanwhile, gas prices are rising in almost every region, with some states already well above the national average.
On April 5, the national average for regular gasoline was $4.11 per gallon, an increase of 86 cents from a month earlier, according to AAA. On the West Coast, drivers are seeing the highest costs, with prices as high as $5.92 per gallon in California and $5.37 in Washington.
Mapped: WHERE GAS PRICES ARE RISING THE FASTEST DUE TO THE IRAN CONFLICT
On the east coast, gas prices exceed $4 in several areas, including $4.27 in Washington, DC and $4.06 in New York.
In the Midwest, Illinois stands out at $4.29 per gallon, while much of the region remains around $3. The southern states remain cheaper overall, although prices are rising. Texas costs an average of $3.82 and South Carolina $3.82, while Florida ranks higher at $4.20.
President Donald Trump on Sunday sent a profanity-laced message to Iran, saying the US will target the regime’s power plants and bridges this week if the Strait of Hormuz is not reopened.
The Strait of Hormuz, a waterway in between Iranthe United Arab Emirates and Oman, is crucial energy bottleneck.
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“Tuesday in Iran will be Power Plant Day and Bridge Day, all rolled into one,” Trump said message read. “There will be nothing like this!!!”
“Open the F—– Street you crazy bastards or you’ll live in hell – JUST LOOK!” read Trump’s message to Iranian leaders. “Praise be to Allah.”
While prices may fluctuate in the coming weeks, this milestone shows how vulnerable fuel markets remain to supply shocks – and how quickly costs could rise to historic levels.
