California Governor Gavin Newsom’s contentious stance toward the oil industry might result in local refineries shutting down. Analysts are cautioning that gasoline prices could soar to levels beyond $6 or even $9 per gallon.
As reported by local ABC affiliate KABC-7:
USC Professor Michael Michet indicated that the Phillips 66 refinery in Los Angeles might cease operations by the end of this year, pushing gas prices over $6.
Michet also suggested that if the Valero refinery in the Bay Area were to close, gas prices could potentially reach around $9 per gallon.
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In light of these anticipated closures, a spokesperson for Newsom mentioned to KFMB-TV that the governor is urging the state to enhance cooperation with refineries to ensure stable and affordable gasoline supplies.
Calmatters.org raised concerns back in April regarding the possible closure of two refineries.
Valero recently confirmed it plans to halt operations at the Benicia Refinery by the end of April 2026, indicating an “intent to stop idle, reconstruct, or refine operations.” This comes on the heels of Phillips 66’s decision to close Southern California refineries after repairs were deemed essential for maintaining a minimum supply of gasoline.
California operates as an oil-dependent state, lacking a pipeline to import supplies from other regions. In fact, drivers in neighboring Nevada and Arizona depend on California for their fuel. Should more refineries shut down, California might need to resort to importing fuel from abroad or potentially acquiring in-state refineries either through purchases or seizures.
For years, Newsom has been a vocal critic of the oil industry, pushing to ban gas-powered vehicle sales within the state. He has condemned the industry during previous price surges for alleged price gouging.
In response, the oil sector argues that California, formerly a leader in fossil fuels, has become prohibitively expensive due to stringent emission regulations, the costs related to a cap-and-trade system, and the diminishing availability of fracking.
Last year, it was noted that Newsom was in a “war” against the state’s oil and gas sector, criticizing health issues related to Los Angeles’ oil extractor sites and ordering older wells to close.
Newsom has claimed, “They’re gouging you. They’re deceiving you… They’re contributing to this climate crisis.” He further stated that oil jobs would be replaced with opportunities in “clean energy.”
