Gas is getting more expensive in California, and Newsom blames Trump

Newsom and oil group trade blame online

Gov. Gavin Newsom’s office and the U.S. Oil and Gas Association got into a public fight over gas prices on Feb. 28. Newsom’s team posted on X that California gas prices had stayed below $5 for nearly two years.

The post blamed President Trump and the military conflict with Iran for shaking up energy markets. The oil group fired back, saying California created its own problem by leaning so heavily on foreign oil.

Newsom’s office pointed to the Iran conflict

The governor’s post noted that California’s average gas price had held below $5 since mid-2023, though the 2023 annual average barely cleared the mark at about $4.95. California’s prices remain the highest in the country.

Newsom later told reporters that every $10 jump in crude oil adds about 24 cents to a gallon of gas.

He placed the blame on the Trump administration, saying the rising prices came as a direct result of the military strikes against Iran.

The oil group said California did this to itself

The U.S. Oil and Gas Association pushed back hard.

The group said California imports about 63% of its crude oil from foreign countries and sits on roughly 1.7 billion barrels of proven reserves it barely touches.

It listed the state’s top foreign suppliers, citing California Energy Commission data.

The group’s main point was simple: no other state depends this much on foreign oil, so no other state is this exposed when global markets get rocky.

Foreign oil powers most California refineries

The numbers back up the oil group’s claim. In 2024, only about 23% of crude oil refined in California came from wells inside the state.

Another 13% came from Alaska. The rest, about 63%, arrived from overseas.

The biggest foreign sources were Iraq at roughly 21%, Brazil at about 20%, Guyana at about 16%, and Ecuador at about 14%. That foreign dependence becomes a real problem when conflicts disrupt shipping routes.

California pumps far less oil than it used to

California’s oil production has dropped sharply over the past two decades. Federal energy data shows the state produced about 630,000 barrels per day in 2005.

By 2025, that figure had fallen to about 260,000 barrels per day, a drop of roughly 59%.

The decline comes from a mix of aging oil fields that naturally produce less over time and state rules that have restricted new drilling. That trend has pushed California to rely more on imports each year.

Several factors keep prices the highest nationwide

California’s average gas price in 2024 hit about $4.76 per gallon, the third-highest annual average on record. The national average in early 2026 sat around $2.92 before the Iran strikes.

California charges the highest gas tax in the country at nearly 71 cents per gallon. The state also adds a carbon tax and requires a special gasoline blend that costs more to make.

Limited pipeline connections make it tough to bring in fuel from other states.

Two major refineries are shutting down

Phillips 66 closed its Los Angeles-area refinery in late 2025. Valero announced plans to shut down its Benicia refinery near San Francisco by April 2026.

Together, those two plants handled about 17% of the state’s refining capacity. Industry officials say high taxes, environmental rules, and expensive upgrades drove the closures.

With each refinery that shuts down, the gap between California’s fuel supply and demand gets tighter.

Newsom reversed course on drilling in 2025

After years of restricting the oil industry, Newsom signed a law in 2025 allowing up to 2,000 new drilling permits per year in Kern County. That county accounts for about three-fourths of California’s oil output.

The move came after warnings that refinery closures could push gas past $8 a gallon. Environmental groups have challenged the law in court.

Some analysts say the new drilling will barely move the needle because in-state production costs almost as much as importing by tanker.

Iran strikes are pushing oil prices up everywhere

The joint U.S.-Israel military strikes against Iran disrupted oil flows through the Strait of Hormuz, a waterway that normally carries about 20% of the world’s oil shipments.

Crude oil prices jumped more than 13% in the days after the strikes began. Experts widely expect gas prices to rise across the country, not just in California.

President Trump acknowledged the conflict could push oil prices higher. The effects are already showing up at pumps nationwide.

California faces a bigger hit than most states

The Western States Petroleum Association said California is especially at risk because state leaders pushed refining and production out with their policies.

California has no inbound crude oil pipelines, so nearly all supply arrives by tanker. About 30% of the state’s foreign crude comes from the Middle East.

Any long disruption in the Strait of Hormuz could create a real supply crunch.

The California Energy Commission has said the state will lean even more on imported fuel as local refining shrinks.

Drivers already pay far more than the national average

Both sides of this fight raise points that hit consumers. The Iran conflict is a global event pushing energy prices up everywhere.

But California’s falling production and foreign oil dependence make it more vulnerable to exactly these kinds of disruptions.

California drivers were already paying about $1.70 more per gallon than the national average before the conflict started.

How much prices climb from here depends on how long the Strait of Hormuz stays disrupted and whether the fighting escalates.

Analysts expect more pain at the pump

Short-term price increases are expected across the country, but California could see sharper spikes because of its reliance on foreign crude and shrinking refining capacity.

The Valero Benicia closure later this year will tighten supply even more. The new Kern County drilling permits will take time to produce results.

The California Energy Commission has said it is working with refiners on short- and long-term supply planning. For now, California drivers are bracing for higher prices with no quick fix in sight.

This article was created with AI assistance and human editing.

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