By Reagan Steele – Business & Economic Policy Writer

The Roseville-based Institute for Gas Price Reduction is going viral on Facebook by saying the plain truth many are too afraid to say. In a meme that has now had over 1700 reactions and is nearing 1000 shares, IGPR calls Democrats to account for anti-oil policies that are now driving oil companies from California and threaten to cause fuel shortages.

While the post has also drawn naysayers who deny the problem, IGPR’s contention is backed by a recent advice letter from California’s Energy Commission, sent to Governor Gavin Newsom June 27th of this year:

“California currently imports over 75% of its crude oil to meet the demand of in-state petroleum refineries and about 10-20% of its gasoline from out-of-state and foreign sources, depending on refinery maintenance activities. Gasoline imports statewide could increase to 25-35% of demand by the summer of 2026, and up to 50% in the northern California region after the announced anticipated refinery closures, bringing risk of supply disruptions and price volatility.”

GasBuddy data shows California has the nation’s highest fuel prices, even higher than Hawaii, which is an island. People notice this when they travel, and go to fill up for a little over $2 in many states. So why is California different? IGPR names several causes of the problem:

Taxes

California’s gas taxes are the highest in the nation at 70.9 cents/gallon. This doesn’t include hidden taxes like the cap and trade and low carbon fuel standard programs that also raise prices.

Declining Production

In the 1980’s California was one of America’s top 3 oil producing states, and we had 50 refineries to turn this production into fuel. Today, California imports 70% of our oil and the number of refineries is down to 14. The planned closures of two major refineries will further reduce capacity by up to 20%

Fuel Island

California’s special fuel blend mandated by the state makes it impossible to import refined fuel from out of state, and even if this were not the case, a lack of pipelines connecting California to out of state fuel means this couldn’t be accomplished easily even if this policy were reformed.

Can these problems be fixed? Certainly they were not caused by acts of God but by acts of government. With Governor Newsom now considering a presidential run, he has more incentive than ever to not have California look like a total basketcase, but time will only tell if Newsom will take constructive action in time to avoid fuel lines.