SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom is feuding with a major oil company over who is to blame for high gas prices in the state, with the Democratic governor’s office urging drivers not to fill up at Chevron stations over the Memorial Day weekend.
“Pro tip: Unbranded natural gas comes from the same refineries, storage tanks and pipelines and meets the same national standards to keep engines running clean,” Newsom’s office posted Thursday on
Newsom’s office cited an analysis by a panel from the state’s Energy Commission, which oversees the oil and gas industry, which found that Chevron’s prices were on average 60 to 80 cents per gallon higher than unbranded alternatives.
Memorial Day weekend is one of the busiest travel times of the year. The call from the governor’s office comes after Chevron posted signs at California gas stations blaming the state’s climate policies for high gas costs. The average gas price in California was $6.14 per gallon Thursday, about $1.58 higher than the national average, according to AAA. The state taxes consumers about 70 cents per gallon of natural gas, according to the state’s Energy Commission. This is the highest gas tax in the country.
“California politicians are choosing foreign oil and fuel over local jobs and lower costs,” the signs read. They feature a QR code that leads directly to a Chevron webpage asking people to “raise their voice for affordable, reliable energy.”
It’s unclear when Chevron posted the signs, but spokesman Ross Allen said they were part of a campaign the company launched three years ago to educate drivers about the impact of California’s policies on prices.
“We have always placed a strong emphasis on the importance of customer education in California so that our drivers and consumers understand where their tax dollars are going,” Allen said.
He said there are hundreds of Chevron stations in California, most of which operate independently and set their own prices.
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 company. Steyer and Becerra are both Democrats.
Since the outbreak of the Iran war, oil prices have risen nationwide, triggering a global energy crisis. Prices for crude oil, the main component of gasoline, climbed during the war as the Strait of Hormuz, the narrow passage in the Persian Gulf through which a fifth of the world’s crude oil normally passes, was effectively closed. Oil tankers are stuck there, unable to deliver crude oil.
Newsom has often touted the state’s status as a global climate leader, passing policies in recent years aimed at hitting oil company profits and lowering natural gas prices.
He signed a law in 2023 that allows the state’s energy commission to punish oil companies for excess profits, declaring that the state has “finally defeated Big Oil.” But regulators voted last year to postpone plans to punish the companies until 2030 and prioritize other measures to protect consumers at the pump.
The delay comes after two refineries representing about 18% of the state’s refining capacity announced plans to close, reigniting debate over the price impact of the state’s ambitious climate policies.
Newsom signed another law in 2024 giving the commission the authority to require refineries to reserve certain amounts of fuel. The goal is to try to prevent sudden price increases when refineries are shut down for maintenance. But this regulation has also stalled.
