KQED's Forum What Do Rising Gas Prices Mean for Californians?
Mar 19, 2026
Alejandro Lazo, a CalMatters climate reporter covering California energy impacts, and Severin Borenstein, an energy markets professor at UC Berkeley, break down rising pump prices. They discuss how the Iran war and Strait of Hormuz disruptions drive global oil spikes. They explain why California pays more, inventory and SPR limits, pipeline restarts, and who feels the pinch most.
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Reporters Share Personal Reactions To Gas Spike
- Alejandro Lazo drives a fuel-efficient 2000 Toyota Echo and felt the pinch filling its small tank.
- Severin Borenstein drives a plug-in hybrid RAV4 and has avoided gasoline use entirely since the war began.
How Global Oil Prices Drive Local Pump Prices
- Global oil price moves quickly transmit to US pump prices because gasoline retailers price for the replacement cost of future deliveries.
- Severin Borenstein explains a $1/bbl oil change ≈ 2.5¢/gal at the pump and inventories only temporarily blunt spikes.
Why Old Gas Sells At New Market Prices
- Retail gasoline prices rise immediately because stations anticipate higher replacement costs for future deliveries.
- Borenstein compares it to selling a house at current market price rather than your original purchase price.