A new gas station in Studio City drew long lines this month by selling regular unleaded for as little as $4.99 a gallon — a stunning discount in a state where drivers are paying some of the highest fuel prices in the country. The promotion didn’t last.
The station, part of the San Diego-based Stars and Stripes chain, opened with the rock-bottom price as Los Angeles County’s average sat at $6.09 a gallon, according to AAA. Stars and Stripes runs gas stations and convenience stores and now operates fifteen locations across Southern California.
“We’re not here to gouge, we’re here to give the people what they need,” Calvin Kalasho, whose family owns the chain, told CBS LA.
By Wednesday morning, the deal had evaporated. Regular gas at the station had climbed to $5.29, mid-grade to $5.70, premium to $6, and diesel to $8.
The pricing whiplash reflects a broader squeeze on California drivers. Statewide, regular gas now averages more than $6 a gallon — up 14 cents from last week and $1.36 higher than a year ago.
Diesel Hits the Ceiling
Diesel has fared even worse. Prices hit record highs last week, with some stations pushing the maximum pump price of $9.99 a gallon.
Patrick De Haan, head of petroleum analysis at GasBuddy, said on September 10 that five California gas stations had advertised diesel at that absolute limit.
“Not every day are new all-time records set, and this will be a particularly painful one for the economy that may not even be immediately felt, but record diesel prices will impact every cargo, shipment, every delivery Americans are taking, and are likely to reignite inflation up and down the supply chain,” De Haan said.
De Haan warned the pain won’t stay contained to gas pumps. Diesel typically rises this time of year, and geopolitical tensions are adding pressure on top of that seasonal trend.
“I suggest Americans anticipate a costlier holiday season, as it appears diesel prices could continue climbing as geopolitical tensions continue to remain a main factor,” he said.
For Southern California drivers who lined up for a $4.99 fill-up, the brief discount was a reminder of how far prices have strayed from what used to be normal — and how fast even a bargain can disappear.
