California gas prices are near $6 again as the refinery blame game turns political

Near-$6 gas is back

California drivers are once again paying prices close to the painful highs of recent years. AAA listed the state average for regular gas at $5.895 on June 8, 2026, far above the national average of $4.164.

That gap matters because fuel costs shape commutes, grocery delivery, road trips, and small business budgets. It also gives politicians a simple number to argue over every time voters pass a gas station.

The gap is getting wider

California’s current price is not just high in isolation. AAA’s state page showed regular gas at $5.895, compared with $4.705 one year earlier, meaning drivers are paying about $1.19 more per gallon than last year.

The state is also coming down from an even sharper recent peak. AAA listed California regular at $6.160 one month earlier, showing prices have eased but remain near the $6 line.

Refinery math is shrinking

The refinery issue is at the center of the current fight. The U.S. Energy Information Administration said California was set to lose 17% of its refinery capacity over 12 months because of two planned closures.

Those closures include Phillips 66’s 139,000-barrel-per-day Wilmington refinery and Valero’s 145,000-barrel-per-day Benicia refinery. Together, they represent a major hit to a state that already runs on a tight fuel supply chain.

California is boxed in

California cannot easily replace lost fuel with gasoline from Texas or Louisiana. Reuters reported that the state has limited regional production, minimal connection to the Gulf Coast refining hub, and no fuel pipelines crossing the Rocky Mountains into California.

That makes refinery shutdowns more powerful than they might look on a national chart. The EIA said the two closing refineries make up less than 2% of U.S. refining capacity but 17% of California’s capacity.

Little-known fact: California’s state underground storage tank fee adds 2 cents to each gallon of gasoline. That fee is separate from the state excise tax, federal excise tax, and climate-program costs.

Washington enters the fight

The fight turned sharper when federal officials came to California. Reuters reported that Energy Secretary Chris Wright and Interior Secretary Doug Burgum blamed California’s strict environmental policies for gasoline prices hovering around $6.

Their message put Governor Gavin Newsom directly in the frame. Wright said the administration was ready to take additional steps and had tried to engage Newsom on helping struggling refineries after recent closures.

Sacramento changes its playbook

California has also started softening parts of its fuel strategy. Reuters reported that SB 237 allows up to 2,000 new oil well permits annually in Kern County starting in 2026.

The goal is to raise in-state crude supply closer to 25% of what California refineries use. Newsom also signed AB 30 in 2025, allowing E15 fuel sales while the state studies its environmental impact.

Little-known fact: Route 66 turns 100 in 2026, making high California fuel prices especially visible during a year built around classic American road-trip nostalgia.

Taxes are part of the bill

California’s price story is not only about refineries. The California Energy Commission says the state excise tax is 61.2 cents per gallon, while the federal excise tax remains 18.4 cents.

State climate programs add another layer. The CEC estimated that in January 2026, the Low Carbon Fuel Standard added about 17 cents per gallon and Cap and Trade added about 25 cents.

Special fuel limits options

California uses a cleaner-burning gasoline blend that not every refinery can make. The EIA said California-grade gasoline blendstock can only be produced by properly equipped refineries.

That limits emergency options when local supply falls short. The EIA said replacement fuel would likely come from Asia, including refineries in India and South Korea that can meet California specifications.

Imports bring new risk

Imports can help, but they add delay. The EIA warned that Pacific fuel shipments take longer to respond to market demand, making unexpected shortfalls more likely to cause temporary price spikes.

The import trend was already visible before the latest pressure. EIA data showed West Coast gasoline imports topped 210,000 barrels per day in late May 2025 on a four-week average basis.

Drivers are still stuck driving

High prices have not cleared Los Angeles freeways. Reuters reported that Caltrans found no major drop in vehicle miles traveled on key Los Angeles-area freeways after the latest fuel shock.

That shows why gas prices hit households so hard. Reuters noted that regular gas in Los Angeles averaged $6.07 on June 1, yet many drivers kept commuting because buses could take three to four times longer.

Neighbor states are exposed

California’s refinery problem does not stop at the state line. The EIA said Arizona and Nevada receive fuel shipments from California refiners and are also likely to feel the effects of reduced regional supply.

That makes the West Coast fuel system more fragile. A refinery closure in California can tighten supplies for drivers in Las Vegas, Phoenix, and other markets tied to the same regional network.

EV growth does not solve today

California’s clean-car shift is real, but it does not erase today’s gasoline demand. Newsom’s office said zero-emission vehicles made up a record 29.1% of new car sales in the third quarter of 2025.

That still leaves millions of gas-powered cars on the road. For families who cannot afford a new EV or lack easy charging, near-$6 gasoline remains an immediate monthly expense.

Want to see why gas prices are climbing again across the country? Take a closer look at what is driving the increase and how it could affect commutes, summer travel, and household budgets.

The next outage matters more

The supply cushion is getting thinner. The EIA said the California government created a minimum inventory law that could reduce the risk of fuel shortfalls after refinery closures.

The risk is that laws cannot create fuel overnight. If another refinery outage, import delay, or global oil shock hits, California has fewer local backup options than it had just a few years ago.

Want to see what Michigan drivers may pay as summer travel ramps up? Take a closer look at why gas prices dipped and what it could mean for road trips, commutes, and vacation budgets.

Do you think California’s near-$6 gas prices are mainly caused by refinery closures, state policy, or oil company pricing? Share your take in the comments.

This slideshow was made with AI assistance and human editing.

Read More From This Brand:

• Gavin Newsom steps in as California tech layoffs surge
• Oil contamination stretches across busy California beach drawing public attention
• California government workers defend remote work as a greener alternative