San Diego gasoline prices extend March surge as Iran war disrupts oil flows and lifts costs statewide

Prices rise above key thresholds in San Diego County

Gasoline prices in San Diego County continued climbing through early and mid-March as global crude markets reacted to the war involving Iran and heightened risks to shipping in the Persian Gulf. By March 11, the average price for a gallon of self-serve regular gasoline in San Diego County reached $5.359, marking one of the highest readings since spring 2024 and extending a multi-week streak of daily increases.

Earlier in the month, the county average approached the $5 mark, with the local benchmark hitting $4.998 on March 6. The speed of the increase has been notable in a state where retail gasoline prices are already elevated due to a tighter refining system and regulatory requirements that limit supply flexibility when disruptions occur.

Oil market volatility feeds directly into retail fuel

Crude oil prices moved sharply higher in March as traders priced in the risk of interrupted flows through the Strait of Hormuz, a critical chokepoint for globally traded oil and liquefied natural gas. In multiple sessions, Brent crude traded around or above the $100-per-barrel level, reflecting persistent uncertainty about maritime security and the duration of the conflict.

Because crude oil is the main cost component in gasoline, rapid increases in crude benchmarks tend to pass through to wholesale fuel markets first, then to retail stations. That pass-through can accelerate in California during periods when refineries are conducting maintenance or when the market transitions toward more expensive seasonal fuel blends.

California’s statewide averages also moved above $5

The price surge has not been limited to San Diego. In early March, the statewide average for regular gasoline exceeded $5 per gallon, rising by more than 40 cents over a one-week span as the broader West Coast market tightened. The combination of higher crude prices and constrained regional refining capacity has made the state more sensitive to external shocks.

What motorists can expect next

Near-term pricing will likely remain tied to three variables: crude oil volatility, wholesale gasoline supply conditions on the West Coast, and the operational status of refineries that produce California-compliant fuel. If crude remains near recent highs and shipping disruptions persist, the upward pressure on gasoline could continue, even if day-to-day station pricing varies by neighborhood and brand.

• San Diego County average regular gasoline: $4.998 on March 6; $5.359 on March 11
• Statewide context: California’s average regular gasoline price moved above $5 per gallon in early March
• Global driver: crude prices repeatedly traded near or above $100 per barrel amid conflict-related supply risks

Retail gasoline prices typically lag crude moves, but the lag can narrow when wholesale markets tighten and local supply has limited slack.