GOODER AND HARDER: California gas prices expected to jump even higher as Valero closes refinery.
California’s already sky-high gas prices are expected to surge after Valero abruptly shuttered its Benicia oil refinery amid a spiraling “oil crisis,” a new report claims.
The Benicia refinery began shutting down on Saturday, four months earlier than planned, a former Valero manager told the California Globe Tuesday.
Thermal imaging showed the facility went cold as the Crimson Pipeline – which transports crude oil from Southern to Northern California – was also taken offline,
“We are in an unprecedented oil crisis,” oil expert Mike Ariza told the publication..
Valero Energy Corp. announced its plans last spring to pull the plug on its 145,000-barrel-per-day refinery by April, a move that is expected to send fuel prices skyrocketing and hobble the state’s refining capacity.
Californians already pay the second-highest gas price in the nation behind only Hawaii. In January, the average price was $4.23 per gallon, according to the American Automobile Association.
Isn’t this all good news from Gavin Newsom’s perspective? Gavin Newsom: Californians Don’t Pay Enough For Gasoline.
Governor Gavin Newsom claims oil companies are price gouging, which is the reason that gasoline prices are almost $2 more than the national average price in his state. Californians are paying almost $5 a gallon for regulated unleaded gasoline, while the nation is averaging $3.25 a gallon. Newsom does not believe that California’s high taxes and endless regulations should make that much of a difference in the gas price, so it must be price gouging. He is also not admitting to the fact that California’s gasoline is a “boutique” fuel that only refineries in California produce and that he and President Biden are paying those refiners incredible subsidies to switch to biofuels, limiting supply. Clearly, economics is not a forte’ of the governor for economics 101 tells you that if you limit supply without reducing demand, prices will go up. It is no wonder that Californians are migrating to Texas and Florida. Gas prices in Florida, for example, average about $3.00 a gallon. And, even though California is all-in on green energy, the air quality is better in Florida and Texas than in California.
That’s from the American Energy Alliance in 2023. In the annus horribilis of 2020, Newsom’s office issued the statement: Governor Newsom Announces California Will Phase Out Gasoline-Powered Cars & Drastically Reduce Demand for Fossil Fuel in California’s Fight Against Climate Change.
And as the Pacific Research Institute noted at the end of 2024: Drivers Beware: California’s Road Diet to Grow Stricter in New Year.
Happy motoring, Golden State!
