Global Energy Crisis Intensifies Gas Prices Surge in California
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
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Source: Newsfilter
- Energy Supply Crisis: The near closure of the Strait of Hormuz due to the U.S.-Israeli war with Iran has thrown global oil trade into disarray, with energy shortages in India and California representing the worst-ever disruption, impacting the global economy.
- India's LPG Shortage: In response to the LPG shortage, the Indian government has directed refiners to maximize LPG output, resulting in reduced alkylate exports that directly affect California's motor fuel supply chain and could drive up prices.
- Surging Gas Prices in California: California's average retail gasoline price has reached $6.14 per gallon, nearing the highest level since 2022, with projections suggesting prices could exceed $6.50 as summer driving season increases demand, putting further pressure on consumers.
- Limited Policy Options: Governor Newsom faces limited policy choices, as any temporary measures to lower fuel prices could exacerbate the alkylate shortage, with the only viable option being to waive fuel specifications to reduce the need for alkylates.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
