Gavin Newsom has siphoned so much out of California's gas tank that what's left will cost residents $8.00 a gallon or more.
That's the very real fear; indeed, it's the prognostication by at least one respected energy expert. And a quiet panic has settled upon Democrats in Sacramento because they know Governor Newsom did this, and they "helped."
It wasn't so long ago that the Golden State's oil business was booming. But since environmental dilettantes took over, there's been a long march to alternative energies that can't sustain life and productivity in the state. And now two more oil refineries, which represent 20% of the state's gas supply, are leaving the state. This, at a time when Silicon Valley requires more energy to satisfy the vast power needs of AI technology.
This isn't news; it's duh. Several refineries have closed or been repurposed already. See my list below. When two other refineries declared they were closing, Phillips 66, in Q4 of 2025, and Valero Benicia, by the end of 2026, that was when a few lawmakers peered like meerkats over their Sacramento laptops and cocked their heads.
It turns out that when the state forces out big refineries, people lose their jobs, and there are no taxes to collect. That means there are fewer dollars for them to waste on non-essential programs.
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In April, Newsom wrote a letter to the state Energy Commission pretending to be concerned about oil refineries profitably operating in the state. I wrote about the oil refinery dilemma in my West Coast, Messed Coast™ update on April 25 (if you don't read it every Friday in PJ Media, you're missing out).
Since he became governor in 2019, Gavin Newsom has overseen the demise or diminution of multiple refineries.
While the Democrat leaders blame corporate greed for the prices, the taxman actually makes far more per gallon than do oil companies. Who will Newsom blame when Valero Energy's Benicia refinery is shuttered or repurposed one year from now?
- Valero Benicia Refinery: Announced it will shut down by April 2026, removing 170,000 barrels per day of capacity.
- Phillips 66 Los Angeles Refinery: Scheduled to close by the end of 2025, removing 139,000 barrels per day.
- Marathon Martinez Refinery: Closed in 2020, resulting in the loss of about 750 jobs.
- Phillips 66 Santa Maria Refinery: Closed in 2023 as part of a transition to renewable fuels.
- Phillips 66 Rodeo Refinery: Converted to renewable diesel, ceasing traditional gasoline/diesel production.
In the late 1970s, California had as many as 50 refineries, and now it's down to seven.
Democrat Assemblyman Mike Gipson, whose district is adjacent to the Phillips 66 plant slated for closure, says the company told him that "it can't do business in California." The regulatory environment makes it impossible to operate, according to NBC-LA. Better late than never, assemblyman. Gipson's late-blooming concern will change exactly zero minds in corporate C Suite offices.
The regulations are so extreme that Valero was fined $82 million last year. They blamed that fine for being the final straw. Now, the company is also reconsidering whether to relocate other refineries from the state.
Two large California oil refineries are shutting down, triggering mounting concerns from state legislators, industry groups and many others
— Mike Netter (@nettermike) June 23, 2025
Cannot do business in the state of California’: Gas prices could hit $8/gallon as two refineries shut down
Keep reminding yourself and… pic.twitter.com/GUIjUc75U0
Yahoo Finance reported that $8.00 gas or higher is likely by the end of 2026. And the reasons are easy to understand. California refines only 24% of the oil it needs. It has to import the rest. Californians pay the highest gas taxes in the country, and those taxes bump up the price of gas right now to more than $4.85/gallon. Other city and county taxes bump the prices up even higher.
Don't let anyone ever tell you that "greedy corporations" are the reason for high gas prices. Greedy elected officials have heaped more costs on gas than corporations — and done nothing to produce it. Indeed, the California Air Resources Board imposed another tax on gas. That 65-cents-a-gallon increase goes into effect on July 1 on top of an increasing 61-cent per gallon excise tax. What does the state plan to do with this largesse, penalize another refinery out of existence?
You can see what refineries do in this handy infographic from the U.S. government.
Yahoo reported that, "With less local supply, experts warn of a potential impact that could range from modest spikes (less than $1 per gallon) to more dramatic spikes if supply disruptions occur." But it gets worse: "One particular analysis forecasts prices could even soar over $8 per gallon by late 2026."
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One expert said in a 2025 study that the state couldn't afford to lose one refinery, much less two. Too late now.
Even with President Donald Trump's success in spiking the federal environmental waiver that California and more than a dozen other states received to kill gas cars, gas-powered leaf blowers, gas stoves, and forcing people to pay for vastly more expensive alternative energies, it may not be enough to save broke Californians. Then, last week, as I reported in last week's West Coast, Messed Coast™ report called Holy Environy! Trump Just Saved the Pacific Northwest from Energy Suicide, Trump saved these same environmental kamikazis from killing themselves again when he took four Snake River dams — producing California, Pacific Northwest, Montana, Wyoming, and Canadian energy — off the removal list.
If Trump hadn't stopped both of those programs, energy prices along the West Coast would have been worse than in Europe.
Gavin Newsom assumed that someone would create by magic all the electricity he'd need to run his electric cars and AI, but he's still in the F-A portion of this energy wish-casting. Now Californians are discovering the F-O part of this charade and that's unaffordable energy costs. With what Newsom's got planned, who will be able to afford to live in California?
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