Gas prices at a well‑known Los Angeles gas station climbed toward $9 a gallon this week as the war involving Iran ripples through global oil markets and hits California drivers particularly hard.
The Chevron station near Alameda Street and East Cesar Chavez Avenue, just across from Union Station, has become a symbol of sticker shock as fuel prices surge.
The station, long notorious for posting prices far higher than surrounding pumps, was advertising regular gasoline for as much as $8.71 per gallon on Thursday, according to the Los Angeles Times.
Why It Matters
The Chevron reflects larger gas price anxiety in Los Angeles and nationwide. As the war involving Iran continues to unsettle oil markets, the station has become a focal point for public frustration over the rising cost of fuel.
With prices already well above national averages and global tensions unresolved, California drivers may continue to feel the impact at the pump in the weeks ahead.
What To Know
The Chinatown‑area Chevron has for years drawn national attention whenever gas prices jump, frequently serving as the backdrop for television news segments and viral social media posts.
That pattern has repeated itself as the conflict involving Iran has roiled oil markets. Prices began surging after U.S. and Israeli military action against Iran more than three weeks ago.
California drivers are especially vulnerable to price spikes because the state already has some of the highest gas prices in the country due to taxes and clean‑air regulations.
Statewide, the average price of a gallon of gas reached $5.37 last week, up 82 cents from a month earlier, according to recent AAA data. In the Los Angeles area, the average was even higher at $5.72 per gallon.
By comparison, prices at the Chinatown Chevron were roughly $3 more per gallon than nearby stations, as it remains one of the most expensive places to buy gas in the city.
Despite the eye‑watering prices, the station continued to see steady traffic. One customer, James Michael, told the Times he expected higher prices given global tensions but was still stunned by the cost.
“I assumed it would be really high prices given what’s going on in the world,” he said. “But it’s really expensive. That’s the most I’ve paid for as long as I can remember.”
The gas station is owned by Hawk II Environmental Corp., which is run by Joe Bezerra Jr. of Whittier, according to the Times.
What People Are Saying
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: “Roughly 20 percent of the world's oil production is being impacted by this war. Not only that, but there will also be a permanent risk premium associated with this conflict as Iran has shown they can control the Stait of Hormuz.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “California is in a unique position as the conflict in Iran pushes oil markets higher. The state is already operating within a tight and relatively isolated gasoline system. Unlike much of the country, California has fewer easy supply alternatives when global crude prices rise or refinery disruptions hit.”
What Happens Next
Gas prices are expected to be just as turbulent and potentially increase in the weeks ahead as the war rages on.
“This can translate into higher prices at the pump in the state at a faster and more intense rate than in many other states,” Beene said. “Given all these factors, it's very possible that gas prices could hit all-time highs in California in the coming weeks if the conflict doesn't subside.”