California Democrats Now Questioning Their Own Policies as Gas Price Crisis Looms [WATCH]

Members of California’s Democratic leadership pressed state regulators Wednesday over the risk of a major spike in gasoline prices as two large oil refineries prepare to close — a situation critics say was shaped by years of policy decisions made under Democratic control.

California Facing $8.43/gallon Gas – a 75% Increase – as Refineries Close.

California is producing only 23.7% of its own in-state oil/gas needs when it used to produce 62% of its petroleum needs from in-state oil producers.@CaliforniaGlobe https://t.co/JQp5mHjaFJ pic.twitter.com/dlzT9knSQX

— California Globe (@CaliforniaGlobe) May 6, 2025

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During a hearing of the California Assembly’s Committee on Utilities and Energy, legislators voiced concern about potential disruptions in the state’s fuel supply and the economic fallout for consumers.

The hearing followed recent announcements from Phillips 66 and Valero that they plan to shut down major refining operations in California later this year.

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Combined, the two refineries represent roughly 20% of the state’s total refining capacity.

“We have a crisis on our hand that may have been self-created by the actions perhaps taken by the state, by regulators,” said Democratic Assemblyman David Alvarez of San Diego during the hearing, according to local outlet KCRA.

Assemblywoman Cottie Petrie-Norris, also a Democrat, warned regulators that state climate policy should not result in runaway prices at the pump.

“I know what climate leadership does not look like, and that is $10 gas,” she said.

California already leads the nation in average gas prices, according to data from AAA.

The possibility of losing additional refining capacity has raised concerns among both lawmakers and regulators that prices could surge by as much as 75%.

Despite this, California regulatory agencies have pushed increasingly strict rules on fossil fuel companies.

State law has empowered agencies to enforce new storage, maintenance, and emissions standards for refineries, contributing to a regulatory climate that energy firms describe as untenable.

Governor Gavin Newsom has supported these measures, while also calling on regulators to do more to prevent refineries from exiting the state.

A recent proposal even floated the idea of increased state involvement in refinery operations, including the possibility of quasi-state-run refineries.

Let’s be clear: Newsom owns this gas crisis.

His extreme policies have made it nearly impossible for California gasoline companies to operate. Now, two refineries are shutting down, cutting our gas supply by 20%.

As Newsom eyes the White House, America should be watching… pic.twitter.com/0XD4tCigAd

— Brian W. Jones (@SenBrianJones) May 6, 2025

During the hearing, Alvarez pressed regulators to acknowledge the consequences of recent closures.

“I think I also heard you say that another closure can lead to a significant increase in costs to consumers on the price of gas?” he asked.

Refinery closures are not new in California. According to the California Energy Commission, the state has not built a major new refinery since 1969.

Over time, policies such as the state’s cap-and-trade program, high fuel taxes, and strict low carbon fuel standards have contributed to an environment where maintaining or expanding refining operations is increasingly difficult.

The state has defended its efforts, pointing to a 2022 law aimed at addressing fuel market volatility.

“In the two years since the Governor signed California’s gas price gouging law, the state has avoided severe gasoline price spikes like the historic 2022 spike, saving Californians billions of dollars at the pump,” a spokesperson for Governor Newsom’s office said in a statement to the Daily Caller News Foundation.

The law created the nation’s first state-level independent petroleum market watchdog and increased transparency requirements for oil companies operating in California.

Phillips 66, while confirming plans to close its traditional refining facility, said it will continue operations in the state.

“We’re also not exiting California,” a company spokesperson told the DCNF.

“We still own and operate various assets that will serve California commercial and customer demands, including the Rodeo Renewable Energy Complex.”

The California Air Resources Board, California Energy Commission, Division of Petroleum Market Oversight, Valero, and multiple legislative offices did not respond to requests for comment.

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