High Gas Prices Hit Silicon Valley
- Soaring gas prices are squeezing household budgets across Silicon Valley, including Campbell residents. - Consumers now spend more on fuel, reducing disposable income amid rising inflation. - Energy costs continue to drive up overall living expenses in the Bay Area (patch.com).
Silicon Valley drivers are paying close to $6 a gallon again, and a new regional estimate says the hit could drain $1.1 billion from local household income this year. (sanjosespotlight.com) San José Spotlight reported April 19 that Joint Venture Silicon Valley expects higher fuel costs to cut 2,600 jobs in Santa Clara and San Mateo counties and reduce total economic output by $706 million if this year’s $1.36-per-gallon increase holds through 2026. (sanjosespotlight.com) The same report said the average price per gallon in Silicon Valley climbed nearly 30% to $5.98 by the end of March, with premium at $6.33. On April 22, AAA listed California’s statewide average for regular at $5.829, versus a national average of $4.020. (sanjosespotlight.com) (aaa.com) Joint Venture researcher Heidi Young said households are spending more at the pump and cutting back elsewhere, with lower-income families taking a bigger hit because gas and groceries claim a larger share of their budgets. (sanjosespotlight.com) Federal inflation data already showed energy moving faster in the Bay Area before this latest run-up. The San Francisco-Oakland-Hayward Consumer Price Index rose 1.3% over the two months ending in February 2026, and the energy index rose 5.0% over that span, including a 7.1% jump in gasoline prices. (bls.gov) Businesses that burn fuel every day are starting to pass costs through. O.C. McDonald Company, a San Jose contractor with a 50-vehicle fleet, told San José Spotlight a recent bulk refill cost $4.63 a gallon, up 50% from $3.08 in January. (sanjosespotlight.com) Part of the pressure is local to California’s fuel system. University of California, Davis economists said in July 2025 that the closures of the Phillips 66 Wilmington refinery and Valero’s Benicia facility could push California gasoline prices up by as much as $1.21 by August 2026 if other market conditions stay similar. (ucdavis.edu) The researchers said California’s special gasoline blend and limited import options make refinery shutdowns harder to offset than in other states. That leaves Bay Area commuters, delivery fleets and contractors exposed when global oil shocks collide with a tighter in-state supply system. (ucdavis.edu) For Campbell and the rest of Silicon Valley, the math is simple: when regular gas stays near $6, every commute costs more and every other purchase has to compete with the tank. (aaa.com)
