In these places, a gallon of gas costs more than the minimum federal wage

Motorists across the United States are struggling with gasoline prices, which are reaching new highs almost daily, but the pain is not evenly distributed across the country. Take a few places where a gallon of regular fuel now costs as much as the $ 7.25 federal minimum wage.

This is a painful threshold that pump prices have reached at nine stations – all in California, says Patrick De Haan of GasBuddy, an expert on oil and gas prices. Understandably, the minimum wage in California is much higher than the federal minimum wage: workers in the state earn at least $ 14 an hour, but pay $ 7.25 a gallon and more still take part of the regular wage.

The average driver in California pays more for gas than drivers in any other state, the AAA reports. The reason is partly due to higher taxes on infrastructure and other costs, but there is also what economist Severin Barenstein of the University of California, Berkeley calls “mysterious charge for gasoline”, Or a price gap that cannot be fully explained by fees or other factors.

Gas prices remain at record highs when Americans head off on Remembrance Day, the unofficial beginning of summer when millions of people head out on vacation or to visit family and friends. But despite rising fuel prices, most drivers are still refueling, and the AAA predicts that this holiday weekend 39 million people will travel more than 50 miles from their homes – a jump of about 8% from a year earlier. if gas cost about $ 3 a year. gallon on average, said AAA.

Here are service stations in California that charge at least $ 7.25, according to GasBuddy:

• Chevron at 901 N. Alameda Street in Los Angeles: $ 7.83 per gallon
• Chevron at 51557 US-395 in Lee Winning: $ 7.39 per gallon
• Chevron on the 712 North CA-127 in Shoshone: $ 7.39 per gallon
• Shell on Main Street, 453 in Bridgeport: $ 7.39 per gallon
• Valera on Main Street, 377 in Bridgeport: $ 7.35 per gallon
• Mobil at 8489 Beverly Blvd. in Los Angeles: $ 7.29 per gallon
• Shell at 51,424 US-395 in Lee Winning: $ 7.29 per gallon
• Mobil at 22 Vista Point Drive in Lee Weining: $ 7.29 per gallon
• Chevron at 3600 Alameda Drive, Menlo Park: $ 7.25 per gallon

Drivers spend thousands more on gas

Americans are increasingly pessimistic about the economy, driven by concerns about the highest inflation in 40 years and the stock market, which collapsed due to fears of recession. according to to a new CBS News poll. While motorists continue to refuel at the pump, they are cutting costs in other areas – such as restaurants – to make up for it.

The impact of high gas prices is increasing: the average family now spends $ 4,800 on gas annually compared to $ 2,800 a year ago. according to Wall Street analyst Edu Yardeni.

Unfortunately, analysts do not predict that gas prices will decline in the near future. The national average could jump to $ 6.20 a gallon by August – compared to the current price of $ 4.60 a gallon. according to in JPMorgan. And Barenstein of Berkeley recently said CBS News that it does not provide $ 2 or $ 3 per gallon of gas any time soon.

Crude oil prices have jumped from a year earlier, and global demand for fossil fuels is growing, even if supply lags behind, he said.

“Even earlier Russia has attacked Ukraine, we observed a lag in oil production. Manufacturers in the United States report that it is difficult for them to force workers to return to the oil fields, “Barenstein said.” They are having problems with supply chains with parts and equipment. ”