AAA reports today that the national average gas price is $3.17 per gallon. California’s average gas price per gallon is $4.65 – once again, the highest gas price per gallon in the nation.
AAA gas prices Sept. 23, 2025
The high gas costs in California is a direct result of Democrats’ harsh regulations and restrictions on the state’s oil and gas industry, leading to two refineries threatening closures, and Chevron to leave the state.
California’s gas prices are higher than even Hawaii, which has to import all oil and gas in.
California Democrats’ war on the oil and gas industry is working, but not for the people, or the oil and gas industry. Governor Gavin Newsom in April directed state officials to increase efforts to guarantee reliable fuel supplies for the nation’s biggest auto market, prompting oil companies to blame state policies for difficult business conditions and high pump prices.
But California’s gas prices have remained the highest in the country.
Only now does Governor Gavin Newsom make a serious move to address the oil and gas industry in California.
Newsom signed legislation last week that fast tracks the approval of 2,000 new wells per year over the next 10 years in Kern County, a significant oil-producing region.
“Translation: I, Gavin C. Newsom, am slightly reversing course on my own policies because they suck and would have driven gas and electricity prices even higher,” Assembly Republican leader James Gallagher posted on X. “Nonetheless I am not lowering any of those costs. Good luck to you California. I’m busy running for President.”
However, in April in yet another blow to California’s oil and gas industry and the state’s fuel supply, Valero Energy Corporation announced it would shut down its Benicia Refinery in April 2026.
This came after Chevron Oil Company announced in August 2024 their corporate relocation to Houston Texas from the Bay Area, and Phillips 66 announced that its Los Angeles refinery will shut down by October 2025 – next month.
Increased oil production, while important, is hollow without the capacity to refine it. With the loss of two of the largest refiners in the state, California will still need to import gasoline, at very high prices.
But now for some good news:
Friday, State Senator Shannon Grove (R-Bakersfield) announced that Senate Bill 237 was signed by Governor Newsom to certify the Kern County Environmental Impact Report (EIR), enabling streamlined permitting to expand oil and gas production while maintaining environmental protections. “SB 237 addresses California’s critical decline in domestic oil production, which has forced the state to import nearly 80% of its oil to meet consumer demand, Grove said in a press statement.”
“Under SB 237, Kern County will now be able to approve up to 2,000 new well drilling permits per year for the next 10 years. This long-term certainty strengthens Kern County’s position as the Energy Capital of California, stabilizes the supply chain, and helps protect Californians from painful swings in fuel prices at the pump. By comparison, the state approved only 84 new well permits last year and just a handful so far this year.”
“Today we are taking a victory lap for every Californian who will benefit from unleashing Kern County energy production with the signing of SB 237!” said Senator Shannon Grove. “By allowing up to 2,000 new well permits annually, Kern County will continue to lead the way in producing reliable, affordable, and environmentally responsible energy. This law brings certainty, keeps prices stable for families at the pump, and allows my hardworking constituents to get back to work powering our state. I want to thank Governor Newsom, Vice Chair Gunda, and especially Loreili Oviatt who has worked tirelessly to expand oil production in Kern County.”
“This landmark law will enable Kern County’s land use rules and environmental assessments to strengthen environmental protection while streamlining the permitting process for oil production in the region,” said Lorelei Oviatt, AICP Retired Kern County Planning Director. “I want to thank Senator Grove for her exhaustive efforts to educate and bring together experts in the energy field to recognize the role that Kern County can play with reducing California’s energy costs.”
This is what Gov. Newsom said about it:
“Stabilizing California’s gasoline supply to prevent price spikes.
Provides a path for a targeted, locally-led, environmentally responsible and safe increase in oil production in Kern County to boost overall fuel supplies in the state.
Protects the state’s ongoing transition away from fossil fuels by maintaining a more affordable, reliable and safe supply of fuels that is often subject to increasing volatility.
Continues the state’s commitment of ensuring the safety of existing oil pipelines and related facilities both onshore and offshore.
Encourages the state’s oil refiners to continue safe operations and further stabilize the market.”
Huh? “Protects the state’s ongoing transition away from fossil fuels by maintaining a more affordable, reliable and safe supply of fuels that is often subject to increasing volatility.”
Western States Petroleum Association (WSPA) President and CEO Jodie Muller released the following statement following Governor Gavin Newsom’s signature on a package of energy legislation, including SB 237:
“Today Governor Newsom signed SB 237, increasing crude production in Kern County under the most stringent regulatory framework in the country. Governor Newsom’s leadership on SB 237 was foundational for the renewed partnership with the oil and gas industry. We look forward to continuing our relationship focused on realistic policies that balance environmental and economic goals to ensure California and the Western States have access to the affordable fuels they need.”
“The oil and gas industry is operating under the belief there is real momentum worth building on next year and we look forward to partnering with policymakers who are prioritizing commonsense solutions and lowered costs for their constituents in California. The path ahead demands that we stay focused on improving markets, increasing investment, safeguarding high-paying jobs and listening to actual experts on implementation of policies impacting the oil and gas industry. The essential workers who show up to ensure California has the fuel it needs to keep our economy and people moving are among the most important voices in this conversation.”
California Independent Petroleum Association CEO Rock Zierman said:
“For too long, Sacramento’s policies have forced our state to spend $25 billion a year importing oil from foreign countries that violate California’s environmental standards, human rights, or labor protections,” said Rock Zierman, CEO of the California Independent Petroleum Association. “SB 237 is a clear step toward reversing that dependency and allowing us to power California with California energy.”
Every barrel of oil produced in-state means fewer foreign tankers idling off California’s coast, lower gasoline prices, and more money staying in local communities to fund schools, first responders, and healthcare.
“Letting Californians produce more oil at home is a win for our workers, our environment, and our economy,” Zierman continued. “Roughly 70% of oil production in California occurs in Kern County, yet overall in-state production supplies less than 25% of the crude consumed by Californians. The rest is tankered in from Saudi Arabia, Iraq, and by tearing down the Amazon Rainforest.”
Foreign oil imports cost $5 to $7 more per barrel than California crude, driving up gasoline prices for California families.
Two major California refineries have already announced shutdown plans, representing nearly 20% of the state’s gasoline supply.
“If the remaining refineries cannot secure increased supplies of in-state crude, we risk seeing more refinery closures and even higher gas prices, potentially $8 a gallon or more, for California families,” Zierman warned.
While this legislation is good for Kern County, for the oil and gas industry, and for the state, as Zierman warns, “If the remaining refineries cannot secure increased supplies of in-state crude, we risk seeing more refinery closures and even higher gas prices, potentially $8 a gallon or more.”
