x
Breaking News
More () »

Expert: Russia-Ukraine crisis could cause gas to spike up to $7 per gallon in California

"The current conflict will increase the price of oil and natural gas," Dr. Soydemir an economics professor with Stanislaus State told ABC10.

CALIFORNIA, USA — With Russia launching a full-scale military attack on Ukraine, California could see drastic increases in inflation that cause gas to increase to as much as $7 per gallon.

"The current conflict will increase the price of oil and natural gas," Dr. Gokce Soydemir an economics professor with Stanislaus State told ABC10. "This will, in turn, drive inflation higher nationwide."

According to AAA, as of Feb. 24, the national average price of gas per gallon was $3.54, whereas a year ago it was $2.66. 

As of Feb. 24, California's average price of gas per gallon was $4.77. In comparison, a year ago, the average price of gas per gallon was $3.61 in California. 

Soydemir says that the current conflict between Russia and Ukraine could increase the price of gas to be between the $6 to $7 range in California.

"My administration is using the tools to protect American families and businesses from rising prices at the gas pump," Biden said in his Feb. 24 remarks. "We're taking active steps to bring down the cost, and American oil and gas companies should not exploit this moment to hike their prices to raise profits."

According to Soydemir, historically, inflation runs higher in the West than in the rest of the nation. As a result, Californians can expect to see higher inflation in California than in the rest of the nation.

"We will likely see high inflation numbers affecting home values which will likely register greater yearly increases," Soydemir said. "The conflict will hit retirement accounts as well, as it will take longer for the stock market to recover."

Due to sanctions, the United States' international trade with Russia, the world's third-largest producer of petroleum, will be negatively affected.

"The high price of oil will generate ripple effects over time which will be felt in the price of goods and services we purchase," Soydemir said.

   

Watch More: How Russia's attack on Ukraine could impact the global supply of gas

Paid Advertisement

Before You Leave, Check This Out