California gas prices may soon go up. Republicans want Gavin Newsom to act
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GAS WARS COULD DRIVE PRICES UP
Two California oil refineries intend to shutter over the next year, which could push average gas prices in the state to $6 per gallon or higher, according to a new University of Southern California analysis.
Prices could go even higher — up to $8.43 — if the state moves forward with adopting stricter fuel standards, allowing gas tax increases and reauthorizing the Cap-and-Trade emissions credit program. Prices would be even higher in rural areas like Humboldt and Mono counties.
Phillips 66 and Valero have announced plans to close refining facilities in Los Angeles and Benicia, respectively. When they go dark, California will lose about 20% of its refining capacity, according to the analysis by Michael A. Mische with USC’s Marshall School of Business.
Since 2001, fuel consumption has dropped about 11% in California. But a major drop-off in production could be “devastating to California’s economic growth and status as the fourth largest economy,” Mische wrote.
“Reductions in fuel supplies of this magnitude will resonate throughout multiple supply chains affecting production, costs, and prices across many industries such as air travel, food delivery, agricultural production, manufacturing, electrical power generation, distribution, groceries, and healthcare,” the analysis reads.
Oil companies and Democratic leaders in California have for years thrown blame back and forth over the state’s high fuel prices, volatile spikes at the pump and sensitive industry supply lines.
Gov. Gavin Newsom blames oil producers for jacking up prices and “fleecing” California drivers. He pushed legislation in recent years to let regulators cap industry profit margins and to require the companies to have backup plans in case outages affect supply lines.
Republicans and the oil industry have blamed increased state regulations and limits on production for average costs that are usually higher than most of the rest of the country.
“Let’s be clear: Newsom owns this gas crisis. His policies have made it nearly impossible for California refineries to stay open,” said Senate Minority Leader Brian Jones, R-San Diego. “If the Governor doesn’t act now, Californians will be blindsided by sticker shock at the pump and skyrocketing prices on everyday goods.”
Jones wrote a letter to Newsom’s office Tuesday, imploring him to act before prices go up.
“In your April 23, 2025 letter to the California Energy Commission (CEC), you noted that California will continue to have ‘a market where demand for gasoline will still exist for years to come,’” Jones wrote. “Given this fact, we must ensure that the gasoline supply remains affordable, reliable, and safe. There is no safer and more environmentally responsible place to refine oil than California.”
Newsom’s office did not respond to a request for comment by deadline.
In an effort to fight climate change and adverse health impacts to communities, California leaders have cut production from in-state wells over the past few decades. But the tradeoff, Mische’s analysis argued, is that the state “is held captive to foreign suppliers” since it imports more than than 60% of its petroleum product from non-U.S. sources.
TRUMP AND NEWSOM GO TIT-FOR-TAT
Via Lia Russell
After President Donald Trump announced Sunday a 100% tax on all foreign-made films, Newsom countered with a $7.5 billion federal film tax credit to subsidize the domestic moviemaking business.
“America continues to be a film powerhouse, and California is all in to bring more production here,” Newsom said in a statement first reported by the New York Times. “Building on our successful state program, we’re eager to partner with the Trump administration to further strengthen domestic production and Make America Film Again.”
So far, the White House has not responded to Newsom’s suggestion. Instead, Trump took a number of potshots at his sometime opponent during a Tuesday press conference, less than 48 hours after ordering the Bureau of Prisons to reopen Alcatraz
as a federal penitentiary.
Trump referred to the governor by his “Newscum” moniker, and complained that California’s high speed rail project had the “worst cost overrun I’ve ever seen ... It’s hundreds of billions of dollars for this stupid project that should’ve never been built.” The Federal Rail Administration is currently investigating the train project, which remains popular with Californians.
“We’re not going to pay for that thing,” Trump said.
Despite claiming to “like Gavin,” Trump falsely told reporters that he had delivered water to Angelenos during the January wildfires because the governor “refused to do it,” and mocked Newsom’s supposed presidential aspirations.
“I’d love him to run for president on the other side, I’d love to see that, but I don’t think he’s gonna be running, because that one project alone, well that and the fires, and a lot of other things, pretty much put him out of the race.”
“Hard pass on fiscal tips from the self-described ‘King of Debt’ who ran a steak company, a casino, and a global economy all into the ground,” said Newsom spokesperson Daniel Villaseñor in response.
“With 50 major structures built, walking away now (from high speed rail) as we enter the track-laying phase would be reckless — wasting billions already invested and letting job killers cede a generational infrastructure advantage to China.”
KILEY SPEAKS ON MEDICAID
Via David Lightman
People eligible for help from Medicaid “will continue to receive their benefits,” Rep. Kevin Kiley said Tuesday.
The Roseville Republican did not sign either of two letters written by center-right Republicans, including Rep. David Valadao, R-Hanford, urging GOP leaders not to dramatically cut the health care program for lower income residents.
The House Energy and Commerce Committee has been instructed to cut $880 billion over 10 years from programs in its jurisdiction, and Medicaid is regarded as a major source of savings.
Kiley said at a news conference Tuesday that there are meaningful ways to save money on Medicaid, called Medi-Cal in California.
They include tackling waste and fraud, and he cited people who get benefits in more than one state. He said “work requirements make a lot of sense.”
He said the program should be “only available to folks in this country legally.” California is one of seven states that has “expanded fully state-funded coverage to at least some income-eligible adults regardless of immigration status,” according to KFF, a nonpartisan health care research organization.
Regarding work requirements, a study by the progressive Center on Budget and Policy Priorities found most people receiving Medicaid work. And while Medicare, like other government programs, is subject to fraud, “there are no reliable measures of fraud against Medicaid,” said another KFF study.
TO LEAP OR NOT TO LEAP
Was it the most important thing that happened at the Capitol on Tuesday? Probably not.
But the Capitol Frog Jump has for 49 years provided a welcome springtime distraction for lawmakers, state workers, and members of the Sacramento press corps alike. The event, which was inspired by the classic Mark Twain short story and hosted this year by state Sen. Marie Alvarado-Gil, R-Jackson, drew a small crowd to promote the upcoming Calaveras County Fair and Jumping Frog Jubilee.
And while a visit to 1895 Angels Camp, where Twain’s story takes place, may be just the departure from Capitol and national politics we all need, we must for now applaud the efforts of this year’s Frog Jump winner: office manager for the Lieutenant Governor’s Office, Jeanelle Loui, whose frog stunned the crowd with an impressive 14-foot, 1-inch leap.
Congrats, state workers!
QUOTE OF THE DAY
“As a former Head Start kid, I know firsthand how imperative and transformative these services are. Ultimately, this is about our value — and about ensuring every child, no matter their ZIP code, gets a fair start in life.”
- Assemblymember Heather Hadwick, R-Alturas, who signed a bipartisan letter California legislators sent to the California Congressional delegation encouraging lawmakers to protect Head Start funding, amid regional office closures.
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This story was originally published May 7, 2025 at 4:55 AM with the headline "California gas prices may soon go up. Republicans want Gavin Newsom to act."