After many years without a Costco card, I finally renewed my membership. Clearly there are many benefits to Costco membership, but mainly I did it for the gas. I never thought I’d be the person calculating whether a Costco membership would pay for itself. Yet here I am, proudly carrying my card mostly because of one thing: the gas station.
My mom would be so proud.
And then there are the lines.
Because our nearest Costco is not so near, I also often consult the GasBuddy app to find the cheapest station in my immediate vicinity. This feels like yet one more thing I need to check on my phone, but necessary since I drive mostly to and from San Leandro, where the BART parking lot has suddenly filled every week—and likely so for commuters in Fremont, Newark and Union City who rely on cars for work, school and errands.
According to AAA, the current average price for a gallon of regular unleaded gas in California is $5.89; a year ago, it was approximately $4.66 per gallon. Meanwhile, the national average is $4.11, compared with $3.13 last year. A difference of more than $1.50 per gallon may not sound like much on a single fill-up, but for someone commuting daily, driving children to activities or running a small business, those dollars add up quickly.
The common perception is that gas prices are higher because of international conflict and greed. But of course there’s more to it than that.
In an article on The Conversation, energy economist Robert I. Harris explains that proposals to suspend the federal gas tax—currently 18.4 cents per gallon—may sound like a simple solution. But he notes that while eliminating that tax would reduce prices, it would not lower them as much as many drivers might expect.
The reason? The price at the pump reflects many factors, including crude oil prices, refinery operations, distribution costs, taxes and California’s unique fuel requirements. The California Energy Commission notes that the state’s isolated fuel market and special gasoline blends also influence what drivers pay.
Here in the Tri-Cities and surrounding areas, high housing costs already push many residents into longer drives, making fuel prices more than a minor inconvenience. There are legitimate debates about California’s energy policies, but understanding the full picture matters.
Like many Californians, I’ll probably keep checking GasBuddy, waiting for the best deal and hoping my Costco membership continues to justify itself. But knowing why gas costs what it does is the first step toward figuring out what can actually be changed.
