Staff Reports
Governor Gavin Newsom told Californians to “AVOID Chevron” over the Memorial Day weekend, a dramatic move in a public fight over sky‑high pump prices. Chevron had posted signs at some stations blaming Sacramento policies. The spat was touched off by a new joint state report that lays out why California gasoline costs so much — and why the blame is not as simple as the governor makes it sound.
Newsom vs Chevron: the Memorial Day gas fight
The governor’s press office posted on X telling drivers, “Californians, if you’re hitting the road this holiday weekend, be sure to AVOID Chevron,” and urged them toward cheaper unbranded gas because it “comes from the same refineries, storage tanks, and pipelines.” Chevron answered with signs saying California policy drives up prices. The back‑and‑forth hit the headlines while average California pump prices hovered around six dollars a gallon. It’s politics on the roadside — and people are paying the bill.
What the state report actually says about prices and margins
The joint California Energy Commission and tax agency report is the hard number in this argument. It shows the state has lost refining capacity over time and that California’s special fuel recipes make the market fragile. It also shows branded stations — including many Chevron outlets — have run higher retail margins than unbranded sellers. In plain English: fewer refineries plus a unique fuel blend plus big brand markups equals pricier gas for Californians.
Newsom’s stunt hides Sacramento’s role
Governor Newsom is right to call out price spikes. But he’s wrong to pretend state rules and taxes aren’t part of the problem. California requires a boutique gasoline blend and levies high taxes and costly regulations that make refining here expensive. Over the last two decades refineries closed or pared back. That limits supply options in a crisis and hands leverage to whoever still controls the pumps. Chevron’s signs hit a real target — but Chevron also gets to set station prices, and many stations are independently owned, so the company can’t hide behind “just educating customers” while margins climb.
The “gift to China” line is a stretch — but not entirely baseless
Some on the right leap from refinery losses to “a gift to China.” That’s a bold claim that needs hard proof: a direct chain showing California policy sent barrels to Chinese buyers and made them richer. What we do know is global turmoil — the Iran war and shipping shifts — has changed who buys which crude. China has picked up some discounted barrels on world markets. So while it’s not proven that Sacramento literally handed paychecks to Beijing, shrinking domestic refining capacity and rising dependence on imports do make the U.S. more vulnerable to global buyers. Translation: this fight is mostly local politics, but it plays out on a global stage where buyers like China can take advantage of dislocations.
Bottom line: Californians deserve honesty, not drama. If leaders want lower pump prices, stop pretending a social‑media boycott solves structural problems. Fix the market: ease punitive rules that drove refineries away, rethink the boutique‑blend setup, enforce transparent retail pricing, and stop hiding behind slogans while people pay more at the pump. Until Sacramento acts, drivers will keep reading the signs — and paying the price.
