California's fuel policy fuels higher prices and foreign dependence, critics say

Critics argue that Governor Gavin Newsom's energy rules have driven up gasoline costs and forced the state to rely on imports from volatile overseas markets.

According to the commentary, Governor Gavin Newsom's environmental regulations have led to a sharp decline in California's refinery capacity, dropping from twenty facilities two decades ago to eleven today. The state also mandates a specialized gasoline formulation that few refineries outside California produce, preventing easy rerouting of fuel from the Gulf Coast or Midwest during emergencies. Consequently, imports have risen, with the Institute for Energy Research noting that 20% of the state's gasoline now comes from Asian refineries and overall refined product imports are up 36% this year.

The article connects this reliance to China's role as a major buyer of Iranian oil and a broker of Russian energy, suggesting that California's policy inadvertently supports adversarial supply chains. Critics, including former Newport Beach mayor Will O’Neill, argue that the governor's narrative blames oil companies while ignoring the impact of state-level decisions on supply resilience. They call for leaders to acknowledge the need for a more flexible, domestically robust fuel system.