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yesterday

California Gas Prices Could Surge to $9 as Refinery Closures Loom

Governor Newsom orders increased collaboration with refiners to stabilize supply as bipartisan concerns grow over economic impacts on motorists.

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California Gov. Gavin Newsom addresses members of the Campaign for a Safe and Healthy California campaigning for Keep The Law (SB 1137) in Ladera Hills area of Inglewood, Calif., on Friday, March. 22, 2024. California Gov. Gavin Newsom, Arnold Schwarzenegger and Jane Fonda are calling on voters to keep a law banning new oil and gas wells near homes, schools and hospitals as the oil industry fights to overturn it. The campaign is to keep the 2022 law. (AP Photo/Damian Dovarganes)

Overview

  • Two major California refineries, Phillips 66 in Los Angeles and Valero in Benicia, are set to close by early 2026, potentially reducing state fuel production by over 20%.
  • A USC study warns that these closures could push gas prices in California above $6 per gallon, with potential spikes nearing $9 per gallon.
  • California’s average gas price is currently $4.82 per gallon, significantly higher than the national average of $3.15, according to AAA.
  • Governor Gavin Newsom has directed state agencies to intensify collaboration with remaining refiners to ensure a stable and affordable gasoline supply.
  • Bipartisan leaders caution that rising gas prices will disproportionately affect low-income Californians, sparking criticism of state policies impacting refinery operations.