Indicator Spotlight | September 24, 2026
Gap Between Silicon Valley and U.S. Gas Prices Widens
By Rachel Massaro
Rising gas prices have implications well beyond what drivers pay at the pump. Fuel costs affect the movement of goods and people and, in turn, can contribute to the cost of everything from food and imported products to moving and construction. See how Silicon Valley gas prices compare to state and national averages, and how much they’ve increased over time.
Gas prices have risen sharply across the country over the past year, with the national average increasing by 39%. While the year-over-year increase has actually been somewhat smaller in Silicon Valley — 33% in the San Jose metropolitan statistical area (MSA) and 31% in the San Francisco MSA — drivers here were already paying considerably more at the pump.
More recently, that gap between local and national gas prices has widened. Gas prices in greater Silicon Valley were about $1.46 more per gallon than the national average a year ago. A month ago, the difference was $1.52. By September 17, it had grown to $1.72 per gallon.
Prices for regular unleaded gasoline in Silicon Valley averaged $6.17 per gallon as of September 17 ($6.08 per gallon in Santa Clara County, and $6.27 in San Mateo County), while California’s average gas price reached $6.09 per gallon, nearly $1.65 higher than the national average of $4.44.
Month over month, gas prices grew 11% in the San Jose MSA since mid-August, 10% in the San Francisco MSA, and 9% both statewide and nationally.
Within California, prices ranged from $5.77 per gallon in Sutter County to $7.08 in Mono County on September 17. In the nine-county Bay Area, the average price was $6.19 per gallon, with prices ranging from $6.03 in Solano County to $6.31 in Sonoma County. Seven of the nine Bay Area counties had prices above the statewide average.
Gas prices are spiking, and recent increases have been particularly rapid in high-cost-of-living places like Silicon Valley. They affect far more than what we pay at the pump, influencing the cost of basically anything that needs to be transported long distances — from food and imports to moving and building. Assuming consistent consumer demand, the local increase of $1.49 per gallon over the past year may have reduced the household income of residents in San Mateo and Santa Clara counties by roughly $1.2 billion. This reduction would have been accompanied by an estimated decline in total industry output of $742 million, and a loss of more than 2,700 full-time equivalent jobs across a wide range of industries, from housing and hospitals to restaurants and retail.1
For more data relating to transportation costs in Silicon Valley, view the online data dashboard.
------- Analysis based on average gas price increases from September 17, 2025 to September 17, 2026 in the San Jose and San Francisco MSAs (AAA/OPIC), retail sales of gas excluding diesel (California Energy Commission, 2024), and the number of households by household income range (U.S. Census Bureau, 2024 American Community Survey 1-Year Estimates). Estimates were modeled using IMPLAN as a loss in household income, assuming evenly distributed gas demand across income ranges. ↩
About the Author
Rachel Massaro is vice president of Joint Venture and director of research at the Silicon Valley Institute for Regional Studies. Their work aims to bridge the gap between academia, council chambers, the boardroom, and the dinner table.
