From AutoBlog, February 17:
Gas prices in California are flirting with $5/gallon today – here’s why
West Coast gas is often expensive, but California is getting hit hard today
- California gas averages $4.54 per gallon, much higher than the $2.94 national average.
- Refinery shutdowns and early transition to expensive summer-blend gasoline drive price spikes.
- Urban stations, especially in Los Angeles and San Francisco, report nearly $5 per gallon prices.
While much of the country is enjoying sub-$3.00-per-gallon gas prices, California is not. Currently, the national average for a gallon of regular unleaded is around $2.94, but in California, drivers are paying a statewide average of $4.54. This massive delta isn’t just a rounding error; a 40-cent surge hit California in the last two weeks, leaving commuters statewide wondering when the bleeding will stop.
The current spike is a perfect storm of infrastructure fatigue and regulatory timing. A significant reduction in refining capacity, as major players like Phillips 66 and Valero begin to wind down or idle their West Coast operations, is brutal and effectively chokes the supply line. The West Coast is paying a “premium” that feels more like a penalty right now – here’s what’s going on.
The Great Refinery Shutdown
The recent closure of the Phillips 66 Los Angeles refinery complex in late 2025 and the early idling of Valero’s Benicia facility have collectively wiped out nearly 18% of the state’s refining capacity. Because California requires a specific blend of gasoline to meet its stringent air quality standards, it can’t easily import fuel from other states when local production hits a snag.This lack of redundancy means that any hiccup in the system results in an immediate, painful price hike at the pump. Petroleum experts warn that the state is reaching a breaking point as it transitions to a greener future without the infrastructure to support the remaining internal combustion fleet. For now, the “supply” side of the supply-and-demand equation is increasingly thin, which is a primary driver behind the current $4.50 floor we’re seeing across the state....
....MUCH MORE
How it got to this point:
February 5 - "California gas prices expected to soar as Valero shutdown worsens oil crisis" (VLO)
A slow motion but inexorable affordability disaster akin to what Germany did to their electricity market, mandate change without building what you want people to change to....
Embedded backlinks to October 2024 including the instant classic:
August 2025 - Facing Possible Economic Collapse, California's Governor Newsom Backtracks On Oil Industry Attacks
He says he's not backtracking, just advancing in a new direction:
“That's not rolling back anything. That's actually marching forward in a way that is thoughtful and considered..."
—Governor Gavin Newsom via KCRA-3 Television, Sacramento, July 4, 2025
