Los Angeles Times – 13 March 2026 – Los Angeles Times

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With crude oil topping $100 a barrel, and the aver- age price of gas in the state approaching $5.50 a gallon, every touch of the nozzle is painful for California driv- ers. Now, with the Iran war nearing its third week, the soaring costs of energy are rippling through the world’s fourth-largest economy. While economists say it’s too early to gauge the long- term impacts on the state, one thing is clear: The higher cost to fill gas tanks is eating into Califor- nians’ disposable incomes — what’s spent to buy food and other necessities, or to go out and have fun — while re- ducing the income of busi- nesses, also facing higher fuel costs.

“Inflation and affordabil- ity have been a big concern for the American public, and the longer this goes on, the greater risk there is of in- creasing overall inflation,” said Trevor Higgins, senior vice president for energy and the environment at the Center for American Prog- ress. The group released a report this week docu- menting the inflationary im- pacts of the war and past conflicts.

The price of a gallon of gas hit $5.37 on Thursday, the highest in the nation and up 82 cents from a month ago, according to AAA. Before the start of the war, the California economy seemed poised for strong growth despite a lagging jobs market that has seen multiple employers — in- cluding several major tech companies such as Google, Block and Autodesk — slash payrolls by the thousands.

The state’s economy grew at a robust 3.8% annu- alized rate in the fourth quarter, driven by artificial intelligence investment, the burgeoning aerospace in- dustry and other high-pro- ductivity sectors, according to the UCLA Anderson Forecast released early this month. The report predicted a possible pickup in employ- ment this year, but any pro- longed conflict in the Middle East means all bets are off. The $4.1-trillion state economy is highly diverse, with large logistics, manu- facturing and agriculture in- dustries, just to name a few sectors having to absorb higher fuel costs — though defense contractors could well benefit from the war.

This is a short excerpt from the opening of “” by Unknown, quoted for review and introduction purposes. All rights belong to the copyright holders.

Book Information

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• Title: –
• Author: Unknown
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