As inflation rates reach their highest level in years, Californians are once again bearing the brunt at the pump, with a typical tank costing more than $100 at some Los Angeles stations.
Inflation figures released this week show consumer and producer price increases at highs in more than three years, driven by the energy crisis stemming from the war with Iran.
Gasoline prices affected consumers' purchasing power the most, with a 41% increase in May compared to the previous year.
While the national average for gas prices is a little above $4 per gallon, in California it is close to $6 per gallon. At a small number of gas stations in Los Angeles, it is even around $7.
When asked about inflation in the Oval Office on Wednesday, President Trump told reporters that the numbers looked excellent.
“I love inflation,” Trump said. “The numbers are going to be phenomenal because what it's showing is that even though we're in a war, the numbers are much lower than anticipated, and when we come out of that war, the numbers will be lower than before it even started.”
Consumers don't feel the love.
Workers in front of a crude oil storage container at Sable Offshore Corp.'s Santa Ynez Unit in Santa Barbara on Friday, June 5, 2026. California producer Sable Offshore Corp. expects to restart a platform capable of pumping 10,000 barrels of oil per day sometime in the third quarter of this year, the company said in an investor presentation Monday.
(Caroline Brehman/Bloomberg)
Costco gas stations in Inglewood were busy Thursday morning, with a steady stream of cars looking to save money on its relatively low per-gallon price of about $5.50.
Inglewood resident Eddin, who chose not to give his last name, said that although his Honda Civic doesn't consume much gas, he has switched to using his girlfriend's hybrid for longer trips.
“Now we just take the car to him because it's more profitable,” he said while filling the tank. “I wish the government could do more not just about gas prices, but prices in general. It seems like prices have gone up on everything.”
Unforgiving prices at the pump will make everyone's summer more expensive. After gas, the biggest price increase for consumers occurred in airline tickets, which rose 27%.
Even staying home doesn't protect shoppers: The meat they might want to put on their backyard barbecues has increased by 15%.
Virginia resident Mario, who also chose not to give his last name, was hit twice by the inflation tax when he left Los Angeles this week. He was paying more to top up his rental as he headed to catch his flight home, having paid much more for the ticket than he had earlier in the year.
“All the flights are a lot more expensive than they used to be,” he said while paying nearly $5.80 a gallon at 76 Century Boulevard, near Los Angeles International Airport.
The average price of a gallon of gasoline is around $3.90 in Virginia.
While price increases are occurring around the world, gasoline costs more in California than almost anywhere else due to higher taxes, fees and cleaner fuel requirements.
The state's gas supply is also particularly vulnerable because it has lost much of its drilling and refining capacity in recent years, making it more dependent on fuel from other states and countries.
As gas prices continue to rise in Los Angeles, locals are forced to adjust their lives to the price at the pump. For some, that includes cutting back on other necessities like food, budgeting strictly to afford half a tank of gas a week, and rethinking side hustles like food delivery.
Public transportation has become a more favorable option for some: daily trips on the Metro increased almost 8% from January to May.
Recent reports have shown a decline in spending on big-ticket household items, and credit card data shows that both luxury and discount shoppers recently spent less than usual on lodging, groceries, clothing and theaters to accommodate a larger gas budget.
Another Inglewood native who chose not to give her last name, Liz, is putting off getting gas altogether because it's so expensive. Instead, he makes more frequent visits and puts a little gas in his car at a time.
“I have to budget and fill up half a tank now, and half a tank later, or ask for an advance on my paycheck just to get gas,” he said.
Most people at the pumps agreed: something has to change.
Wayne Faulkner is from Los Angeles but now lives in Indiana, where gas costs about $3.50 a gallon. He complained as he filled out his rental at the LAX booth.
“Our gas situation is much better than here,” he said.
