California is Screwed when it comes to Gas Prices - I mean, really screwed

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"HEY AI, WHY ARE CALIFORNIA GAS PRICES SO HIGH?"

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Valero and Chevron aren't exactly "packing their bags for Texas" out of spite—they're fleeing a regulatory hellscape that's made staying profitable impossible. Chevron relocated its HQ to Houston (smart move), and Valero just ate a cool $1.1 billion impairment to shut down its Benicia refinery by April 2026, with Phillips 66 already winding down its LA-area plant by the end of this year. That's roughly 17% of the state's refining capacity vanishing because—shocker—endless emissions rules, stockpiling mandates, and hostile policies finally broke the camel's back.

And how does this "destroy" gas prices? California's genius lawmakers mandated a special "cleaner-burning" boutique blend (CaRFG/CARBOB) that's so unique and woke, no one else in the U.S. bothers producing it regularly. It's more expensive to make, isolates California as a "gasoline island" with no inbound pipelines from the rest of the country, and relies on a shrinking handful of local refineries.

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"California gas is different due to a unique, cleaner-burning fuel blend mandated by the state for lower pollution, stricter environmental rules, higher taxes, and its isolated 'gasoline island' market, which relies on limited local refineries, making it costlier to produce and supply than standard U.S. gasoline."

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Valero and Chevron (among others) were major producers of this petroleum. With them bailing, they're already ramping up imports—Those tankers take 30-40 days to cross the Pacific, rack up massive shipping costs, and expose us to every global disruption imaginable.

Result? Tighter supply, wilder volatility, and even higher prices at the pump—because nothing says "environmental progress" like shipping fuel halfway around the world from places with looser standards. Enjoy the ride California - KEEP VOTING BLUE; it's only going to get more expensive.