California Governor Gavin Newsom's office is warning residents to avoid purchasing gasoline from Chevron stations during the Memorial Day holiday weekend, attributing the high prices at the pump to the oil company's pricing strategies.
Newsom's Office Urges Drivers to Choose Unbranded Gas
In a post on X on Thursday, Newsom's office advised: "Pro tip: unbranded gas comes from the same refineries, storage tanks, and pipelines, and it meets the same state standards to keep your engine running clean. Big Oil is already making billions off Trump’s Iran War; don’t let them rip you off even more by overpaying for the brand name."
The statement cited an analysis by a group within the California Energy Commission, which oversees the oil and gas industry, revealing that Chevron averaged more than 60 to 80 cents per gallon above unbranded alternatives.
Chevron's Response and Signage Campaign
The call-out follows Chevron posting signs at California gas stations that blame the state's climate policies for the high cost of fuel. The signs read: "California politicians are choosing foreign oil and fuels over local jobs and lower costs." They include a QR code directing customers to a Chevron webpage urging them to "speak up for affordable, reliable energy."
Chevron spokesman Ross Allen stated that the signs are part of a campaign launched three years ago to educate drivers on the price impacts of California policies. "We've been very vocal about the importance of customer education in California so that our drivers and our consumers understand where their tax dollars are going," Allen said. He noted that hundreds of Chevron stations in California are independently operated and set their own prices.
Gas Price Context and State Policies
The average price of gas in California stood at $6.14 per gallon on Thursday, approximately $1.58 higher than the national average, according to the American Automobile Association. The state taxes consumers about 70 cents per gallon, the highest gas tax in the country.
Memorial Day is typically one of the busiest travel weekends of the year. Prices at the pump have surged nationwide since the Iran war began, disrupting global energy markets. The price of crude oil has climbed due to the effective closure of the Strait of Hormuz, through which a fifth of the world's crude oil normally passes.
Newsom's Legislative Actions
Governor Newsom, who often promotes California's climate leadership, has enacted policies aimed at curbing oil company profits and reducing gas prices. In 2023, he signed a law allowing the California Energy Commission to penalize oil companies for excess profits, declaring the state had "finally beat big oil." However, regulators voted last year to delay such penalties until 2030, prioritizing other consumer protection efforts. This postponement came after two oil refineries, accounting for roughly 18% of the state's refining capacity, announced closures, reigniting debate over the impact of California's climate policies on prices.
In 2024, Newsom signed another law granting the commission authority to require refineries to maintain a minimum fuel inventory to prevent sudden price spikes during maintenance shutdowns. However, that regulation has also stalled.
