California Governor Gavin Newsom has urged drivers to avoid Chevron gas stations over Memorial Day weekend, accusing the oil company of contributing to the state’s high gas prices.
Newsom’s office posted on X, advising consumers to opt for unbranded gas, which is sourced from the same refineries and meets the same state standards. The governor’s office cited an analysis by the state’s energy commission, which found Chevron’s prices to be 60 to 80 cents higher per gallon compared to unbranded alternatives.
The ongoing Iran war has exacerbated global energy shocks, with California drivers paying an average of $6.15 per gallon, the highest in the nation. The state’s reliance on imported oil and gas has raised questions about the affordability of gasoline during the transition to renewable energy sources. California Energy Commission Vice Chair Siva Gunda noted that while supply is stable through mid-June, securing oil and gas will become more expensive thereafter.
Economists, including Neale Mahoney from Stanford, suggest that imports could lower prices by adding competition. However, the oil industry argues that California’s strict regulations make it difficult to compete with cheaper, imported gasoline produced under less stringent standards.
Governor Newsom’s call to action is part of a broader effort to address the state’s energy challenges. The California Energy Commission is negotiating long-term supply deals with Asian refiners to stabilize prices. Meanwhile, Newsom is pushing for new state incentives to boost electric vehicle sales, aiming to reduce reliance on fossil fuels.
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