Full Breakdown
California Gas Prices Surge Amid Geopolitical Tensions and Local Policies
3/13/2026, 8:34:42 AM
Rising Gas Prices in California
California drivers are currently facing unprecedented gas prices, with averages exceeding $5 per gallon, significantly higher than the national average of approximately $3.57. As of March 12, 2026, the average price for a gallon of regular unleaded gasoline in California was reported at $5.37, a sharp increase from $4.81 just a week prior. This surge is attributed to a combination of geopolitical tensions, particularly the ongoing conflict with Iran, and local regulatory policies.
Factors Driving Price Increases
The conflict in the Middle East has been a primary driver of rising crude oil prices, which recently surged to about $119.50 per barrel. Although the U.S. does not import oil from Iran, the instability in the region affects global supply chains, leading to increased costs at the pump. Doug Johnson, a spokesperson for the American Automobile Association (AAA), noted that while the Middle Eastern conflict is a significant factor, it is not the sole reason for the price hikes. Seasonal transitions to summer-blend gasoline, which is more expensive to produce, and recent refinery closures in California have also contributed to the rising costs. Notably, the Phillips 66 refinery in Los Angeles has shut down, and the Valero Benicia refinery is set to close, further tightening supply.
Political Responses and Criticism
California Governor Gavin Newsom has attributed the spike in gas prices to President Donald Trump's military actions in Iran, claiming that these actions have cost Americans an additional $1.5 billion at the pump. Newsom's administration argues that the conflict has disrupted global oil markets, exacerbating an already challenging situation for California consumers. However, critics, including Republican lawmakers and industry leaders, contend that Newsom's own policies, particularly the state's stringent climate regulations and high gas taxes, are to blame for the exorbitant prices.
Steve Hilton, a Republican candidate for governor, criticized Newsom for attempting to shift blame, stating, "California has the highest gas taxes and fees in America." He and others argue that the state's regulatory environment has led to refinery closures and increased reliance on imported fuels, making California's energy supply more vulnerable to global disruptions.
Industry Concerns
The California Air Resources Board (CARB) is currently proposing amendments to its Cap-and-Invest program, which aims to reduce greenhouse gas emissions. However, industry leaders, including Chevron and Marathon Petroleum, have expressed concern that these regulations could further destabilize the state's energy market and lead to job losses. Chevron's president warned that the proposed changes could threaten the viability of California's remaining refineries, which are already operating under challenging conditions.
Official Statements & Responses
In response to the rising gas prices, Newsom's office has reiterated that the state's fuel prices were stable until the recent geopolitical tensions escalated. A spokesperson emphasized that the price increases are not unique to California, as they are being felt nationwide due to the global nature of oil markets. Meanwhile, some Democratic lawmakers have called for a reevaluation of the proposed CARB regulations, citing concerns that they could disproportionately impact consumers already struggling with high energy costs.
What's Next
As California navigates these challenges, the state legislature is under pressure to address the rising gas prices and the implications of ongoing geopolitical conflicts. Lawmakers from both parties are debating potential solutions, including emergency sessions to discuss regulatory changes and the possibility of expanding offshore oil drilling to enhance local supply. The situation remains fluid, with ongoing discussions about how best to balance environmental goals with the immediate needs of consumers facing soaring fuel costs.
