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Merced County gas prices to rise as crude oil costs soar. What drivers will pay

Merced County drivers may notice a jump in gas prices the next time they fill up.

Gas prices in California and the United States have increased in recent days, and experts say they could keep rising as tensions with Iran escalate, according to AAA.

“The conflict in the Middle East has sent crude oil prices higher,” AAA said in a March 5 news release.

Crude oil is the main ingredient used to make gasoline and diesel, so when oil prices rise, drivers usually feel it at the pump.

Roughly half of what you pay at the pump comes from the cost of crude oil. The rest covers refining, transportation, marketing and taxes, according to the U.S. Energy Information Administration.

Here’s how much crude oil prices have increased — and what drivers in Merced County can expect to pay at the pump:

An ARCO gas station at 1295 West Yosemite Ave., Merced.
An ARCO gas station at 1295 West Yosemite Ave., Merced. Angela Rodriguez arodriguez@modbee.com

How much did crude oil prices rise?

The cost of crude oil briefly surged to about $119.50 per barrel on Monday, March 9, the Associated Press reported.

As of Tuesday, crude oil prices had dropped to just a little under $90, according to reporting by Business Insider.

Doug Johnson, a spokesperson for AAA, said Monday’s spike in gas prices was partly tied to the Iran war — but that’s not the only factor.

“It’s complicated,” Johnson said. “It’s not just all the Middle East.”

Even though the United States does not import oil from Iran, Johnson said, the conflict can still affect global supply. Countries that rely on Iranian oil, such as China, might need to buy oil from other suppliers.

“So when they’re not getting their oil from Iran, they’re going to have to go to the same sources that we do in the Persian Gulf,” Johnson said. “That impacts supply.”

What is causing gas prices to rise in Merced County?

Johnson said other factors are also pushing gas prices higher across California, including Merced County.

Refineries are starting the annual switch to summer-blend gasoline. It is more expensive to produce and typically leads to higher prices at the pump.

California is typically the first state in the nation to make the transition, according to AAA.

Many states are required to switch to the summer fuel by May 1, and most gas stations nationwide must sell it by June 1. In parts of California, the transition began in February.

“On April 1, the state mandates that all gas stations have to start selling summer-blend,” Johnson said. “That will be in effect until Halloween.”

Refinery changes are also tightening supply.

Phillips 66 shut down late in 2025,” Johnson said. “The Valero Benicia Refinery is also set to close.”

With fewer refineries operating, Johnson said fuel prices are rising “all over the map.”

How much can I expect to pay for gas in Merced County?

As of Tuesday, March 10, the average price for a gallon of regular unleaded gasoline in Merced County was about $5.17, according to AAA.

Just a week earlier, the average price was $4.55 per gallon.

That is a 62-cent difference.

Around this time in 2025, Merced County drivers were paying about $4.67 a gallon.

The U.S. Energy Information Administration had previously predicted that gas prices in 2026 would be about 6% lower than in 2025, but Johnson said recent global events have changed that outlook.

However, he said, prices could still fall later in the year if tensions involving Iran ease.

“We can’t predict what’s going to happen,” Johnson said.

“The conflict in the Middle East has sent crude oil prices higher,” AAA said in a news release.
“The conflict in the Middle East has sent crude oil prices higher,” AAA said in a news release. Angela Rodriguez arodriguez@modbee.com

Where to find cheapest gas stations in Merced County

GasBuddy is a price-tracking website designed to help motorists find the cheapest gas prices in their areas.

As of Tuesday, March 10, some Merced County gas stations were offering prices below the local average of $5.17.

According to the price-tracking site GasBuddy, these were 10 of the cheapest gas stations in Merced County based on the cash price for a gallon of regular gasoline:

1. Chevron, 28960 Gonzaga Road, Santa Nella — $4.49 per gallon

2. Gas-N-Save, 963 West 16th St., Merced — $4.59

3. 76, 1619 Sycamore Ave., Atwater — $4.59

4. Diamond Gas & Mart, 1720 R St., Merced — $4.65

5. Star Gas & Mart, 1970 East Childs Ave., Merced — $4.65

6. Costco, 1445 R St., Merced — $4.69

7. Sinclair, 780 South Ave., Gustine — $4.69

8. Mobil, 1401 Atwater Blvd., Atwater — $4.75

9. ARCO, 2070 East Childs Ave., Merced — $4.79

10. Brothers Royal Crown Mini Mart, 2689 North Buhach Road, Atwater — $4.79

How can I save on gas?

According to AAA, here are some fuel-saving tips:

  • Driving the speed limit can help improve your vehicle’s fuel economy.
  • Check your tire pressure regularly, since underinflated tires create more friction on the road and cause your car to use more gas.
  • Limit your use of air conditioning and open the windows when possible.
  • Remove unnecessary items from your car.
  • Use cruise control when possible to keep a constant speed.
Angela Rodriguez
The Modesto Bee
Angela Rodriguez is a service journalism reporter for The Bee. She is a graduate of Sacramento State with a bachelor’s degree in journalism. During her time there, she worked on the State Hornet covering arts and entertainment.
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