SACRAMENTO, Calif. (AP) — California’s Governor Gavin Newsom has engaged in a public disagreement with a prominent oil corporation regarding accountability for the state’s elevated fuel costs. The Democratic governor’s office specifically recommended that motorists avoid purchasing gasoline from Chevron stations during the upcoming Memorial Day weekend.
“Expert tip: unbranded fuel originates from the same refineries, storage facilities, and pipelines, and adheres to identical state benchmarks to ensure your engine operates efficiently,” Newsom’s office communicated via X on Thursday. “Large oil companies are already profiting immensely from Trump’s Iran War; do not allow them to further exploit you by overpaying for a brand name.”
Newsom’s administration referenced an analysis conducted by a division within the state’s energy commission, which supervises the oil and gas sector. This analysis indicated that Chevron’s average prices were consistently between 60 to 80 cents per gallon higher than non-branded alternatives.
Memorial Day weekend represents one of the year’s most active travel periods. The governor’s office made this recommendation following Chevron’s placement of signage at California fuel stations, attributing the high cost of gasoline to the state’s climate policies. As of Thursday, the average price of gasoline in California was $6.14 per gallon, approximately $1.58 above the national average, according to the American Automobile Association. State taxes on consumers amount to roughly 70 cents per gallon, as reported by the state’s energy commission, making it the highest gas tax in the nation.
“California legislators are prioritizing foreign oil and fuels over domestic employment and reduced expenses,” the signs stated. They also displayed a QR code linking to a Chevron webpage that encourages individuals to “advocate for affordable, dependable energy.”
The precise timing of Chevron’s sign installation remains unclear, but spokesperson Ross Allen stated that they are part of a three-year-old company campaign aimed at educating drivers about the price effects of California’s policies.
“We have been very outspoken about the importance of consumer education in California so that our drivers and consumers comprehend how their tax contributions are utilized,” Allen explained.
There are hundreds of Chevron stations operating throughout California, most of which are independently managed and establish their own pricing, he added.
Chevron has also become a point of contention in the gubernatorial race, with billionaire climate activist Tom Steyer criticizing former federal health secretary Xavier Becerra for accepting campaign donations from the corporation. Both Steyer and Becerra are members of the Democratic party.
Fuel prices nationwide have surged since the commencement of the Iran conflict, triggering a global energy crisis. The cost of crude oil, the primary component of gasoline, has escalated during the conflict due to the effective closure of the Strait of Hormuz, the narrow Persian Gulf passage through which one-fifth of the world’s crude oil typically transits. Oil tankers have been stranded there, unable to deliver their crude cargo.
Newsom, who frequently highlights California’s leadership in global climate initiatives, has enacted policies in recent years designed to curb oil company profits and lower gasoline prices.
In 2023, he signed legislation granting the state’s energy commission the authority to penalize oil companies for excessive profits, declaring that the state had “finally defeated big oil.” However, regulators voted last year to postpone plans for penalizing businesses until 2030, instead prioritizing other strategies to safeguard consumers at the pump.
This delay occurred after two oil refineries, collectively responsible for roughly 18% of the state’s refining capacity, announced their intentions to cease operations, rekindling debate over the pricing impacts of the state’s ambitious climate policies.
Newsom signed another bill in 2024 empowering the commission to mandate that refineries maintain a specific quantity of fuel in reserve. The objective is to mitigate sudden price increases when refineries undergo maintenance shutdowns. However, the implementation of this regulation has also been stalled.
