Soaring gas prices prevalent in Southern California before Labor Day - Why the surge?
In Southern California, gas prices have seen a significant increase ahead of the Labor Day holiday, with the average cost per gallon of self-serve regular gasoline reaching $4.67 in San Diego and $4.61 in the Los Angeles-Long Beach area, according to the Auto Club of Southern California.
This marks the first time in 2025 that pump prices in some Southern California areas have been higher than they were on the same date last year. The increase was by 10 cents or more across most of the region during the last week.
Statewide, the average cost per gallon on Friday was $4.59, a jump of nearly 8 cents from a week ago. This puts California as the state with the highest average gas price in the country. Hawaii and Washington state follow closely behind.
The recent price increases are primarily due to a spike in Los Angeles wholesale gasoline prices, caused by some unplanned refinery maintenance. Other state-specific factors such as California's stricter environmental regulations, the use of costly reformulated gasoline mandated to reduce pollution, higher state taxes on fuel, and limited refinery capacity which constrains supply also contribute to the higher prices in Southern California compared to the US average.
Nationwide, gas prices on Labor Day are expected to be at $3.15. Despite the high prices in Southern California, many people from the region are still planning to travel for the holiday weekend. However, Los Angeles itself is not expected to rank among the top travel destinations this weekend.
According to AAA, domestic travelers will make their way to cities like Seattle, Orlando, and New York. As people hit the road, they will be paying more for gas than they have in previous years, but the allure of a well-deserved break may outweigh the cost for many.
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