Mayor of New York Reacts as Gas Prices Hit $12 Per Gallon in California

California’s fuel market is facing mounting pressure as refinery closures significantly reduce in-state gasoline production while demand remains high. With daily consumption near 1.72 million barrels and refining capacity falling well below that level, the state has become increasingly dependent on imported fuel. Because California requires a specialized gasoline blend known as CARBOB, supplies cannot easily be sourced from other U.S. states and must instead come from a limited number of overseas refineries. This creates longer supply chains, slower response times to demand spikes, and greater exposure to global shipping disruptions, all of which contribute to higher and more volatile fuel prices.

The impact extends beyond California’s borders, affecting neighboring states that rely on California refineries for fuel, as well as agriculture, transportation, and logistics sectors that depend on stable diesel supplies. Policy changes introduced over the past several years—including inventory mandates, profit margin controls, and environmental compliance requirements—have increased operating costs for refiners, influencing investment and long-term viability decisions. As fuel prices rise, households and businesses face higher transportation costs that feed into broader cost-of-living pressures, raising questions for policymakers about how to balance environmental objectives, energy security, and affordability.


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Mayor of New York Reacts as Gas Prices Hit $12 Per Gallon in California