Latest news with #refineryclosures
CBS News
29-05-2025
- Business
- CBS News
California lawmakers pounce on energy board amid departing oil refineries: "We have a crisis on our hands"
Concern over rising gas prices and fleeing gas refineries has California lawmakers wondering if the state's gas crisis is getting worse because of them. It comes on the heels of two more refineries announcing they will end production. As Tai Milder, the director of the Division of Petroleum Market Oversight, testified with statistics explaining California gas price spikes, Democratic Assemblymember Connie Petrie-Norris, also the chair of the Assembly Utilities and Energy Committee, interrupted him. "Sorry to interrupt you, director," Petrie-Norris said. "I guess I'm just a little confused. So if California companies were raking it in, why did we just have two refineries announce their intent to close?" These lawmakers, Republicans and Democrats, pounced on this California Energy Commission and Air Resources Board panel, asking if they were sending California into a greater gas crisis. "We have a crisis on our hands that may have been self-created by the actions that have been taken, perhaps by the state, by regulators," Democratic Assemblymember David Alvarez said. "I'm still having a hard time, in terms of price manipulation, so can you help me with that?" Democratic Assemblymember Mike Gipson said. "I know what leadership does not look like and that is $10 gas," Democratic Assemblymember Petrie-Norris said. The energy committee is turning its attention from gas companies to regulators as two more refineries announced closures in the past year, leading to a looming 20% reduction in the state's gas supply. Severin Borenstein is a UC Berkeley professor and director of the Energy Institute at Haas. He said prices could go up in dollars per gallon. "I think if we are not prepared for the closure of these two refineries, we could see a very abrupt increase in prices," Borenstein said. "That is a real threat right now. California needs to get out ahead of it. This is a fire drill, this is not a long-term planning problem." The gas supply problem comes as California regulators have designed policies to remove gas-powered cars from the roads to reduce pollution. The Senate voted last week to revoke three vehicle emissions waivers in California.
Yahoo
11-05-2025
- Business
- Yahoo
New report warns California gas prices may soar past $8 a gallon by 2026
SAN DIEGO (FOX 5/KUSI) — A new report warns gas prices locally and across California may rise up to 75% by 2026 as refinery capacity shrinks. The average price for a gallon of regular gas in San Diego County rose Saturday to $4.79, nearly two dollars more than the state average of $3.13, but in the months to come all drivers in California could all be paying much more to fill up. With warmer months ahead, we can expect something besides just temperatures to go up. 'Historically, we always pay a little bit more for gas during the summer because of that high demand and because of that summer blend gasoline,' said Annlleyn Venegas, Senior Public Specialist with the American Automobile Association. Venegas said price shifts are also often influenced anytime there are fears about supply. The report by Michael Mische at USC's Marshall School of Business warns fuel prices could top $8 by the end of next year. San Diego-area drivers are dreading what might be coming at the pump. Gas prices could top $8 in California by 2026 due to refinery closures, report warns 'I'm probably going to drive a lot less if I'm having to pay that much for gas. It's concerning. We already pay more than every other state,' said resident Austin McAdams. 'It would be less travel. I would have to make different plans and things like that. So, it would definitely be more of a hardship,' said resident Leslie Brown. The report cites the scheduled closures of the Phillips 66 Refinery in Los Angeles this October and Valero's Benicia Refinery next April. It states when that happens, it could mean a potential 21% reduction in the state's refining capacity over three years, and some lawmakers are waving the red flag. 'We are in a current financial crisis and we're on the precipice of a financial disaster if the governor doesn't get his arms wrapped around this problem and get it fixed,' said State Senate Minority Leader Brian Jones, R-San Diego. Jones sent a letter to Governor Gavin Newsom urging him to 'find immediate solutions and prevent further closures.' Newsom's office pushes back on report claiming 75% spike in California gas prices by 2026 Governor Newsom has disputed the study's findings. Taking to X, his press office shared a letter he sent to the California Energy Commission directing it to 'redouble efforts to work with refiners to ensure a safe, affordable and reliable supply of gasoline.' As they keep tabs, some experts are waiting for clarity with the rest of us. 'It's really hard to know for sure what could happen in the near future,' said Venegas. The study also suggested ways lawmakers can lower gas prices, such as revoking a plan to ban the sale of new gas-powered cars by 2035, and easing restrictions on in-state petroleum production. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
