ICYMI: Refiners Warn Newsom Cap-and-Invest Plan Could Drive Up Gas Prices

SACRAMENTO — California oil refiners are putting Governor Gavin Newsom on notice. A proposed change to the state’s cap-and-invest program could push gas prices more than a dollar per gallon higher and force more refineries to close.

The Western States Petroleum Association (WSPA) recently sent a letter to the Governor calling the proposed changes a serious threat to California’s energy supply.

Earlier this week, Chevron also sent a letter to the Governor raising similar concerns. According to the letter, the proposal could:

• Raise gas prices by $1.21 per gallon by 2030
• Put more than 536,000 California jobs supported by the energy industry at risk.
• Reduce in-state fuel production and increase reliance on foreign fuel imports, creating national security risks.

California is already losing refinery capacity fast. Nearly 18 percent of in-state fuel production is set to shut down within six months, making the state more dependent on foreign imports and leaving drivers exposed to greater price swings.

“Energy companies keep leaving, and the Governor keeps ignoring warning signs,” said Assembly Republican Leader Heath Flora. “Instead of piling on more regulations, Sacramento should make it easier to produce energy so Californians pay less at the pump.”

California already pays some of the highest gas prices in the nation. With supply shrinking and costs rising, families and small businesses could be hit hardest.

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