Gas Price War in California: Newsom vs. Chevron
"Unbranded gas comes from the same refineries and meets state standards."
— California Governor's Office
California Governor Gavin Newsom's office urged drivers not to purchase gas from Chevron stations over Memorial Day weekend, citing a state analysis showing Chevron prices averaging 60 to 80 cents per gallon above unbranded alternatives. The statement noted that unbranded gas comes from the same refineries and meets state standards.
Chevron posted signs at California gas stations attributing high prices to the state's climate policies. The signs include a QR code linking to a Chevron webpage urging consumers to "speak up for affordable, reliable energy." Chevron spokesperson Ross Allen stated that the signs are part of a campaign launched three years ago to inform drivers about price impacts of California policies. He noted that most Chevron stations are independently operated and set their own prices.
As of Thursday, the average gas price in California was $6.14 per gallon, approximately $1.58 higher than the national average, according to AAA. The state's gas tax is about 70 cents per gallon, the highest in the country.
Governor Newsom, who has advocated for climate policies, signed a law in 2023 allowing the state to penalize oil companies for excess profits. However, regulators postponed enforcement until 2030 after two refineries accounting for about 18% of the state's refining capacity announced closures. In 2024, Newsom signed another law requiring refineries to maintain fuel reserves to prevent price spikes, but that regulation has stalled.
Key Takeaways:
- Newsom's office urges boycott of Chevron over price gap of 60-80 cents/gallon
- Chevron blames California's climate policies, launches counter-campaign
- California gas price: $6.14/gal ($1.58 above national average)
- State gas tax: 70 cents/gal (highest in U.S.)
- Newsom's profit penalty law postponed until 2030 after refinery closures
- Fuel reserve law stalled amid industry pushback