Californians resigned as gasoline prices spike

Californians filling up their cars on Friday winced at the spiralling cost of gasoline, but largely shrugged as residents of the state that has long had the highest gas prices in the United States.

California drivers are paying an average of more than $5 for a gallon ($1.34 per litre), according to the American Automobile Association (AAA), up more than a third from a year ago, as Russia's invasion of Ukraine sends world oil prices rocketing.

"It's going to affect the prices," Mike Hernandez said. 

"I'm not really into politics or anything like that, but now that this thing is going on between Russia and Ukraine, it's just that sad."

Russian President Vladimir Putin's invasion of neighbouring Ukraine has sent financial markets into meltdown.

Prices for crude oil -- the raw material for gasoline -- have been hit hard, and are up well above $110 a barrel, with players fretting about the impact on Russian supplies, as sanctions choke Moscow off from the global economy.

While all countries have access to the same gasoline, subsidies or taxes imposed locally mean the ultimate cost to consumers varies wildly.

For example, in oil-producing Nigeria, which subsidies fuel, the official price is 40 US cents per litre.

In Hong Kong, drivers were already paying US$2.50 per litre in 2021, according to the Economist Intelligence Unit.

On average, Americans pay around $1 per litre, according to the AAA, and even California's $1.34 per litre is well below the prices paid by Europeans.

California's relatively high gas prices are the result of state taxes, as well as stricter refining rules that require specific fuel formulas intended to reduce air pollution in the hot summer months.