A recent study indicates that Californians could be paying as much as $8.43 per gallon of gas next year as two refineries in the state have plans to shutter.
The analysis, done by University of Southern California professor Michael Mische, said that the likely major decrease in oil production could result in a hike in the Golden State, but also neighboring states that get their supply from it.
“Any disruptions to oil and foreign gasoline supplies will exacerbate California’s gasoline dilemma and drive-up prices. Any disruptions to maritime markets, routes, ports, operations, etc., will have a significant effect on California gasoline security and consumer prices, as well as prices in Nevada and Arizona,” Mische wrote on Monday. The Phillips 66 refinery in Los Angeles, as well as the Valero’s Benicia refinery in Northern California, are expected to close their doors.
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Democratic Gov. Gavin Newsom’s press office dubbed the study as “unsourced” but said that they are working to avoid production issues.
“As a reminder, the Governor directed the state to redouble efforts to work with refiners to ensure a safe, affordable and reliable supply of gasoline,” Newsom’s press office posted to X.
“[Gov.] Newsom will keep fighting to protect Californians from price spikes at the pump,” the post continued.
Regardless, the research has warranted bipartisan concern.
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“WARNING TO CALIFORNIA MOTORISTS! If we continue to drive refineries out of California, gas prices will soar and disproportionately affect those who can least afford it,” former Los Angeles Mayor Antonio Villaraigosa, a Democrat running for governor, posted in response to the study.
“We can meet our Climate goals, but we can’t do it all on the backs of Californians already struggling with high costs and the highest gas prices in the nation,” he added.
Republicans in the state legislature lambasted the governor over the policies that could lead to potential hikes.
“Refineries are shutting down, and gas prices are spiking. Californians are paying the price for Gavin Newsom’s failed policies. Life here keeps getting harder, and he’s too busy chasing his next job to care. This isn’t leadership, it’s ambition at our expense,” Assembly Minority Leader James Gallagher told Fox News Digital. Republican Sen. Suzette Martinez Valladares added that “every trip to the gas pump is a brutal reminder that the people in power have turned their backs on working Californians.”
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As of Thursday, California’s average gas price is $4.82 per gallon, significantly above the national $3.15 average, according to AAA. Mische recently released another study concluding that gas woes in the state are tied to policies, not price-gouging — a conclusion that Newsom’s office disagreed with, saying that gouging is still a key factor, FOX Business reported.
“While I understand the state’s environmental goals, the cumulative impact of recent policies has made it increasingly difficult for refineries to remain operational. Specifically, policies such as SBX1-2, ABX2-1, and recent changes to the Low Carbon Fuel Standard are placing increasing pressure on operations, accelerating closures, and increasing gas prices,” State Senate Minority Leader Brian Jones wrote to Newsom in a letter on Tuesday.
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