California’s oil refineries are closing at a fast pace, threatening to drive up gasoline prices in what is already one of the most expensive places to fuel up in the United States.
In the Los Angeles area, a complex is preparing to stop turning oil into gasoline by the end of the year. Another refinery outside San Francisco is poised to shut down next spring.
If both close, California will lose around 18 percent of its refining capacity, and prices at the pump are likely to rise. Forecasts for how much vary from around a dozen cents to several dollars per gallon. Regular gasoline averaged $4.65 a gallon in the state on Monday, substantially higher than the national average of $3.18, according to the AAA motor club.
The threat of higher fuel prices is upending energy politics in the state, which is leading the country’s transition to electric vehicles. A year ago, Gov. Gavin Newsom, a Democrat, was calling oil companies liars and “the polluted heart of this climate crisis.” Now, state officials are trying to convince refinery executives to keep at least one of the plants open.
California’s dilemma is an early example of the practical challenges involved in shifting from one energy source to another. The state’s demand for gasoline is falling steadily but, with the exception of the pandemic, slowly. When a refinery closes, though, a chunk of supply disappears at once.
Officials in California have made it clear that they want to wean the state from fossil fuels, and refiners want to take their business elsewhere. But state leaders appear to have been surprised by how quickly oil companies are decamping.
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