See the facts below.
Two major California refineries are ceasing production, taking nearly one-fifth of the state’s refining capacity offline.
This loss of in‑state refining will tighten local fuel supplies and make California more dependent on fuel shipped in from elsewhere.
SOURCE: U.S. Energy Information Administration reported California refining capacity as of January 1
When refinery capacity is reduced, there is less gasoline, diesel, and jet fuel available to meet demand.
Tighter fuel supplies put upward pressure on prices for California families, farmers, truckers, and businesses.
SOURCE: Patrick De Haan, Head of Petroleum Analysis, GasBuddy, April 18, 2025
With fewer refineries operating, unexpected outages or disruptions can cause sharper price spikes at the pump.
SOURCE: U.S. Energy Information Administration, July 9, 2025.
Higher taxes and regulatory costs in California result in elevated gas prices when compared to Arizona and Nevada.
“I’m not sure I understand the argument for a windfall profits tax on energy companies. If you reduce profitability, you will discourage investment, which is the opposite of our objectives.”
“The state really needs to be paying attention to this and see if there are ways we can cushion this impact.”