Gasoline Imports Surge in California Amid Refinery Closures
In November, California witnessed an unprecedented spike in gasoline imports, primarily driven by significant refinery shutdowns following years of stringent regulations enforced by state leaders, as reported by Bloomberg News.
A staggering 40% of California’s gasoline imports originate from the Bahamas, with additional supplies coming from Asian countries like Japan and India, according to data shared by Vortexa. Politicians in California have consistently imposed tough regulations on the oil and gas industry, resulting in the highest gasoline taxes in the U.S. These measures, alongside emissions cap-and-trade programs, are aimed at reducing gasoline usage. Rising energy costs in the state have been a major concern, affecting consumers deeply.
Currently, California’s gasoline prices hover around $4.58 per gallon, significantly above the national average of $2.92 per gallon, based on the latest AAA figures. The costs associated with transportation are further exacerbating the strain on California’s already expensive gas market.
Two major refineries in the state, including Phillips 66, plan to cease operations. Another facility, Valero’s Benicia refinery, is also set to shut down, resulting in a substantial writedown of $1 billion.
“Valero didn’t pull out of California lightly; incurring a loss of over $1 billion speaks volumes about the state’s regulatory environment,” noted Jason Isaac, CEO of the American Energy Association. “Shuttering refineries that supply nearly 9% of the state’s gasoline, particularly when demand remains, is not a strategic transition—it creates a self-inflicted supply shock. The inevitable outcome is soaring prices, increased volatility, and a greater reliance on foreign fuels. Californians will notice this spike every time they fill up,” he added.
The Bahamas has become a crucial link in California’s strained supply chain, with two tankers loaded with gasoline already arriving from the region in early 2026. This surge in imports marks a significant increase, surpassing the combined total of the previous nine years, as detailed by Bloomberg News.
Gasoline imports have seen a decline since reaching a peak in January due to Phillips 66’s decision to halt operations. The lack of interstate pipelines is also highlighting affordability challenges across California.
Patrick de Haan, head of petroleum analysis at GasBuddy, indicated that the refinery closures are likely to raise gas prices by an additional 5 to 15 cents per gallon. He emphasized that California requires a specific blend of gasoline that some Asian countries can provide.
In light of the upcoming refinery closures, some state regulators are beginning to soften their approach. Democratic Governor Gavin Newsom recently mentioned in discussions about the potential gas crisis, stating that California is actively collaborating with the industry, utilizing data and transparency to protect consumers, and preparing for future energy needs.
“While other states might accuse us of spreading fear, California is focused on real solutions: working with industry and ensuring consumer protection while planning for future energy requirements,” Newsom commented in January. “We are also in talks with Valero to explore options for keeping the Benicia refinery operational and appreciate their responsible planning in the interim, including the potential for importing refined products.”
