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California Receives Last of Pre-War Oil as Hormuz Closure Fuels Gas Price Fears
State agencies and school districts are trimming budgets as CHP fuel costs rise 46% and Caltrans costs rise 44%, officials said.
California state agencies and school districts face surging fuel costs driven by the war in Iran that began in late February, straining budgets for organizations including the California Highway Patrol and Caltrans.
H.D. Palmer, spokesperson for the Finance Department, stated that price increases are rippling through the economy, with agricultural fertilizer costs climbing due to the closure of the Strait of Hormuz.
In Siskiyou County, diesel prices have climbed as high as $7 a gallon, while average fuel costs for the CHP have risen almost 46% and Caltrans reports a 44% increase.
Siskiyou County Superintendent Allan Carver said the increased costs are "taking money away from programs that benefit kids and families," as districts struggle to account for expenses while preparing next year's budgets.
Gov. Gavin Newsom attributed higher energy costs to Trump administration policies straining the state, while the Finance Department warned that elevated prices will likely drive broader inflation and reduce purchasing power.