Full Breakdown
California Gas Prices Surge Amid Iran Conflict and Refinery Closures
3/3/2026, 10:17:20 PM
Rising Gas Prices and Political Blame
California is facing a potential spike in gas prices, with predictions that they could reach $5 per gallon due to ongoing conflicts in Iran and the closure of key oil refineries. Governor Gavin Newsom has attributed these rising costs to President Donald Trump's military actions in Iran, stating, “Gas prices are going up…you’ll be paying more because of Trump’s war.” Newsom's comments come as California's gas prices, which averaged $4.65 per gallon as of early March 2026, remain the highest in the nation, significantly above the national average of $2.99.
The Impact of Refinery Closures
The closures of the Phillips 66 refinery in Bakersfield and the Valero facility in Benicia have exacerbated California's energy crisis. The Phillips 66 site ceased operations in December 2025, while the Valero facility is set to close soon. Critics argue that Newsom's stringent environmental regulations, including a refinery price-cap law enacted in 2023, have accelerated these closures and increased the state's reliance on imported oil. As a result, California imports approximately 63% of its crude oil despite having significant proven reserves estimated at 1.7 billion barrels.
Official Statements and Responses
In response to rising gas prices, Newsom has signed legislation allowing for up to 2,000 new drilling permits annually in Kern County, aiming to boost local oil production. However, the U.S. Oil and Gas Association has criticized Newsom's leadership, stating, “The only state worried about rattling foreign markets is California because you have let yourselves become dependent on foreign supplies.” This sentiment reflects a broader frustration among industry representatives regarding California's energy policies.
Criticism of Leadership
Republicans and oil industry representatives have condemned Newsom's attempts to blame Trump for the gas price increases. Representative Vince Fong (R-Bakersfield) labeled Newsom's statements as “dangerous and irresponsible,” asserting that his policies have weakened California's energy independence. Critics argue that Newsom's administration has dismantled in-state production capabilities, leaving the state vulnerable to fluctuations in global oil markets.
Conflicting Reports and Gaps
While Newsom has warned of potential price increases of 10 to 30 cents per gallon due to the Iran conflict, analysts remain cautious. Matt McClain, a petroleum analyst with GasBuddy, stated, “I’m not going to rule out $5, but I’m also not going to rule it in,” highlighting the unpredictability of ongoing geopolitical tensions.
Verbatim Quotes
- “Gas prices are going up…you’ll be paying more because of Trump’s war,” — Gavin Newsom, Governor of California
- “The only state worried about rattling foreign markets is California because you have let yourselves become dependent on foreign supplies.” — U.S. Oil and Gas Association
- “His policies have made our state increasingly dependent on foreign oil while dismantling in-state production, jeopardizing pipeline infrastructure, and crippling our refining capacity,” — Vince Fong, Representative (R-Bakersfield)
As California navigates these challenges, the interplay between state policies and global events continues to shape the landscape of energy prices and political accountability.
