Newsom blames Chevron for California’s gas-price problem
The blame game over rising gas prices is heating up, with Gov. Gavin Newsom suggesting Chevron may be gouging its customers.
California governor, who does not hesitate to promote his positions with provocative posts, warned Memorial Day travelers in x Opposes gas pumping at Chevron.
“Californians, AVOID Chevron if you’re hitting the road this holiday weekend,” he said in the post, which included screenshots showing Chevron gas prices being higher than nearby unbranded gas stations. “Unbranded gas comes from the same refineries, storage tanks and pipelines.”
The governor’s call is part of a larger dispute between some California politicians and Chevron. The gas company posted signs at some gas stations in California blaming Sacramento policies for the state’s high prices.
“California politicians choose foreign oil and fuels over local jobs and low costs,” the banners read.
It includes a QR code that directs people to a Chevron web page asking people to “speak up for affordable, reliable energy.”
A spokesman for Chevron did not immediately respond to a request for comment.
A Chevron spokesman told The Associated Press the signs were part of a campaign launched three years ago to educate the public about how California policies affect gas prices.
A Chevron refinery in El Segundo on May 4.
(Kyle Grillot/Bloomberg via Getty Images)
Chevron and other leading energy companies and experts emphasized that high taxes, fees and standards for gas in California, as well as refining restrictions, have increased pump prices. Industry leaders say gas prices are among the highest in the country even in the best of times, and recent problems affecting supply from the Middle East have triggered a unique challenge for the state.
Gas prices have skyrocketed in California and across the country since the United States and Israel attacked Iran in late February. Gas prices have not stabilized since then, with California’s average remaining about $1.60 above the national average. The state’s average gas price was $6.13 as of Friday, according to the American Automobile Assn.
A number of factors California’s higher costs are factored in, including a premium gas blend that limits pollution, environmental program fees, the relative isolation of the state fuel market and state and local taxes, according to the California Energy Commission.
Californians have cut back on holiday travel and cut back on leisure overnight trips as prices at the pumps have not stabilized.
In his X post, Newsom noted that major oil companies earned billions of dollars from the Iran war. The price of crude oil has increased since the start of the war due to the virtual closure of the Strait of Hormuz through which oil passes.
Chevron is the state’s largest branded retailer, controlling 19% of California’s gas market with more than 1,600 stations, according to the state’s energy commission.
commission’s analysis 84 percent of 2024 gasoline prices found Chevron’s retail margin was 84 cents. The price difference between the oil company and unbranded gas stations was 48 cents that year.
Tensions between the oil giant and the state escalated when Chevron moved its headquarters to Texas in 2024. The move ends the company’s long history dating back 145 years to its founding in the state.
The oil company later complained about Sacramento’s energy and climate policies. Since then, companies, especially in technology sectors, have fled the state, blaming the state’s high operating costs.
California taxes consumers 70 cents per gallon of gasoline; This is the highest state tax in the country.
Newsom was a staunch opponent of big oil companies, but the legislation he passed was largely stalled. In 2023, he signed a law that will penalize oil companies for excessive profits. Regulators voted to delay the plans until 2030 after two major oil refineries threatened to close shop in the state.
