The blame game over surging gas prices is heating up as Gov. Gavin Newsom suggested Chevron could be gouging its customers.
California’s governor, who is not shy about promoting his positions with provocative posts, warned Memorial Day travelers on X against pumping gas at Chevron.
“Californians, if you’re hitting the road this holiday weekend, be sure to AVOID Chevron,” he said in the post, which included screen grabs showing Chevron gas prices higher than those at nearby unbranded gas stations. “Unbranded gas comes from the same refineries, storage tanks, and pipelines.”
The governor’s call-out is part of a larger spat between some California politicians and Chevron. The gas company posted signs at some of its California gas stations blaming the state’s high prices on Sacramento policies.
“California politicians are choosing foreign oil and fuels over local jobs and lower costs,” the signs read.
It includes a QR code that directs people to a Chevron webpage asking people to “speak up for affordable, reliable energy.”
A spokesperson for Chevron did not immediately respond to a request for comment.
A Chevron spokesperson told the Associated Press the signs were part of a campaign launched three years ago to educate the public on how California’s policies affect gas prices.
A Chevron refinery in El Segundo on May 4.
(Kyle Grillot/Bloomberg via Getty Images)
Chevron, as well as other top energy companies and experts, has emphasized that higher taxes, fees and standards on gas in California, as well as its restrictions on refining, have bolstered prices at the pump. Gas prices are among the highest in the country, even in the best of times, and recent problems influencing supply from the Middle East have triggered a unique challenge for the state, industry leaders say.
The price of gas has skyrocketed in California and across the country since the United States and Israel attacked Iran in late February. Gas prices have not stabilized since, and California’s average is nearly $1.60 higher than the national average. The state’s average gas price is $6.13 as of Friday, according to the American Automobile Assn.
A number of factors account for California’s higher costs, including a premium blend of gas that limits pollution, environmental program fees, the relative isolation of the state’s fuels market, and state and local taxes, according to the California Energy Commission.
Californians have scaled back holiday travel and cut down on leisure night outs as the prices on the pumps don’t stabilize.
Newsom noted in the X post that big oil companies are making billions of dollars off the Iran war. The price of crude oil has surged since the war started, as the Strait of Hormuz, through which oil typically passes, was effectively shut off.
Chevron is the state’s biggest branded retailer, controlling 19% of California’s gas market with more than 1,600 stations, according to the state’s energy commission.
The commission’s analysis of 2024 gas prices found Chevron had a retail margin of 84 cents. The price difference between the oil company and unbranded gas stations was 48 cents that year.
Tensions between the oil giant and the state rose when Chevron relocated its headquarters to Texas in 2024. The move ended the company’s long history in the state, dating back to its founding 145 years earlier.
The oil company complained then about Sacramento’s energy and climate policies. Companies, particularly in the tech sectors, have fled the state since then, blaming the state’s high operating costs.
California taxes consumers 70 cents per gallon of gas, the highest state tax in the country.
Newsom has been a staunch opponent of big oil companies, but the laws he’s passed have largely stalled. He signed a law in 2023 that would penalize oil companies for excess profits. Regulators voted to hold off plans until 2030 after two major oil refineries threatened to close up shop in the state.
