SAN DIEGO – California hit a new record high for gas prices on Sunday.
In San Diego, a regular gallon of gas averaged $5.33, according to Southern California Auto Club – AAA. That’s up nearly 50 cents from last week.
University of San Diego economics professor Alan Gin said soaring prices are due to the war in Ukraine.
“There’s just a lot of uncertainty that’s roiling the world oil markets and that’s causing prices then to go up,” Gin said.
He said while the U.S. hasn’t put sanctions on Russia’s oil, companies are taking it upon themselves to boycott it — meaning less supply and higher prices overall.
“A lot of people aren’t buying it voluntarily, so Russia’s actually had to offer some discounts in terms of their oil and it’s still not selling,” Gin said.
And it’s not just pain at the pump.
Ukraine is a top producer of titanium, which is a metal used in golf clubs, meaning prices could jump and production could slow in places like North County.
“If there’s any disruption in titanium exports, then that could affect the manufacturer of the clubs and other, or the parts, in other countries and then that will affect assembly here in San Diego,” he said.
Gin said another concern is food prices, and shortages in Asian and African countries.
Ukraine is a big exporter of corn and barley. As the country is attacked, exporting goods becomes more difficult.
“So we have a lot of craft breweries here that could be impacted by higher prices as far as barley’s concerned,” Gin said. “And another place that’s a big impact is that barley is used as feed – about 70% of the world barley crop is used for feed purposes, and so that’s going to cause the price of meat I think to rise.”