California’s high gas prices are being driven by a combination of global events and decades of state policies, according to Jodie Muller, the President and CEO of the Western States Petroleum Association.
The state has been averaging about $6 a gallon for a month, while diesel prices hover around $8 a gallon.
“It’s heartbreaking,” Muller said. “I see those same prices. I pull up to the pumps, I fill my car up with it, and I know that people are hurting right now. It’s really an unfortunate situation of decades of policies that have led to the situation we’re in. And I really feel for the consumers in California.”
Muller noted that global conflicts, including the war between Russia and Ukraine and unrest in the Middle East, have worsened the situation.
“All of that has compounded to a global situation that is really impacting prices for all consumers in California,” she said. “But we also have to remember that California has had the highest gas prices before any of that started. And again, even if you compare the prices in California right now to the rest of the nation, everyone is hurting. Everyone is seeing higher prices, but California’s substantially higher than everyone else.”
On the topic of diesel, Muller explained that the state is experiencing a significant supply crunch.
“It’s worldwide. There’s a huge competition right now amongst countries for that,” she said. Muller added that California’s reduced refining capacity, due to refineries leaving the state, has further strained the supply. “We are in a competition with the rest of the world for this product as well as the rest of the country, quite honestly,” she said.
When asked about the potential imports of Russian diesel into the U.S., a deal struck between President Donald Trump and Russian President Vladamir Putin, Muller expressed uncertainty about its impact.
“We’ve heard so many stories about drone strikes and other issues in Russia that have impacted their refinery. So, we don’t really know how much supply that might actually bring to the situation,” she said. “I do think that everyone is scrambling to find any type of quick fix that they can find to try and help the situation and put more diesel into the marketplace.”
Muller emphasized that there is no quick fix to the current crisis.
“We have had decades of policies in California layered on top of each other, which have led us to this moment,” she said. “And unfortunately, we have a global situation that is impacting supply even more so. We have to take a very close look at every single policy. We also have to start looking at this from a holistic perspective in the state.”
When asked about the potential acceleration of clean energy initiatives due to the current situation, Muller said, “Everyone is looking for more energy, and as an association, we are not anti-anything.”
“We believe that we need all of the above. We need everything. I truly believe we are going to need more and more energy, not less,” she said. She highlighted the state’s high demand for fuel, including 37 million gallons of gasoline and 6 million gallons of diesel daily, and stressed the importance of balancing innovation with meeting current energy needs.
Muller also addressed comparisons between California’s gas prices and those in Hawaii, noting that California’s regulatory environment and high gas taxes contribute to the disparity. “We have just made it more and more difficult to do business in California, which has added to the highest gas prices in the nation,” she said.
Looking ahead, Muller expressed optimism about the state’s future leadership, pointing to both candidates for governor, Democrat Xavier Becerra and Republican Steve Hilton.
“I’m really encouraged because I feel like both candidates truly understand that we are at a crisis point when it comes to oil and gas in California,” she said. “I know that they understand that they are inheriting a big problem that has been created from the last administration over the previous eight years, and they’re going to have to clean it up.”
Muller called for a collaborative approach to address the crisis. “Let’s sit down, let’s talk, let’s find solutions, work with the people who are putting the fuels out there into the marketplace every day,” she said.
In the short term, Muller hopes to see a coordinated effort to develop a comprehensive energy policy. “I would love to see someone, whether you call them the czar or the quarterback, whatever you want to call them, who is looking at a holistic energy policy for this state and is looking at every single layer, every single level of government so that we can put a plan in place and stop hurting consumers,” she said.
Muller concluded with a message to Californians struggling at the pump.
“We hear you and we feel it, too,” she said. “This industry has some of the hardest working individuals. Our skilled labor force has been working 24/7 to get as much fuel to the marketplace as possible. Those refineries are running day in and day out to try and meet the demand as much as they can.”
She added that refinery utilization rates in California have reached 95% this month, underscoring the industry’s efforts to address the supply crunch. “We are doing our best to meet the demand and continue to really help as much as we can with the supply crunch that has been created,” Muller said.
KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.