Newsom's office pushes back on report claiming 75% spike in California gas prices by 2026
Gov. Gavin Newsom's office is pushing back on claims made in a recent report that gas prices in California could surpass $8 per gallon by the end of 2026.
The report, authored by Michael A. Mische of USC's Marshall School of Business, stated that the scheduled closure of the Phillips 66 refinery in Los Angeles, along with Valero's planned shutdown of its facility in Northern California, 'represents a potential 21% reduction in California's refining output over three years.'
Mische and other experts argue that reduced refining output is a major reason why California drivers consistently see the nation's highest gas prices.
'The estimated average consumer price of regular gasoline could potentially increase by as much as 75% from the April 23, 2025, price of $4.816 to $7.348 to $8.435 a gallon by calendar year end 2026. We can expect retail prices to be even higher in counties such as Mono and Humboldt,' Mische wrote.
However, Newsom's office claimed that Mische is 'bankrolled by Saudi Arabia' and utilized the scientific method of 'guessing.'
In a statement to KTLA, Mische admits to working for Saudi Arabia but said his work was related to a project called Vision 2030.
'Allegations have been leveled as to being an 'agent' of, working for or on behalf of, and being 'bankrolled' by Saudi Arabia. Nothing could be further from the truth, and the allegations are patently inaccurate and without substance and merit. For the record, my work in Saudi Arabia had absolutely nothing to do with petroleum, and I received no payments from any Saudi petroleum company or any oil company,' Mische told KTLA.
He said his Vision 2030 work involved steering the Saudi economy away from fossil fuels.
Mische also called the allegations 'perverse.' He shared that he has offered the governor, or any member of his staff or legislature, the opportunity to meet with him on this matter. He told KTLA that he would provide them with complete transparency into the work.
'We have not received any direct outreach. The Governor relies on the experts he's appointed at the Energy Commission, Division of Petroleum Market Oversight, and the Independent Consumer Fuels Advisory Committee to keep the state informed of market dynamics,' Daniel Villaseñor, a spokesperson for Gov. Newsom, said in a statement to KTLA.
Newsom's office isn't the only one casting doubt on the report.
Consumer Watchdog announced Thursday that its president, Jamie Court, wrote to the leaders of the University of Southern California asking that it investigate Mische for a violation of the university's conflict of interest code since he didn't disclose that he had ties to Saudi Arabia.
'The recommendations from Mische's report are a treasure trove of tax subsidies and giveaways to both the refining and oil production sector,' Court wrote in the letter. Saudi Arabia's state-owned oil company, Saudi Aramco, has an interest in refining in the United States. There is no question that the policies Mische advocates will inure to the benefit of his client.'
'The university received and is reviewing Jaimie Court's letter. We are unable to discuss any individual cases due to the confidential nature of personnel matters,' a statement from USC read.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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