California's Gas Prices: Why Oil Industry Demands Might Not Help Drivers

Gas prices in California shot up by over a dollar since the Iran conflict began, squeezing family budgets. Instead of focusing on solutions that could ease the pain at the pump, the oil industry is pushing for more drilling permits, tax breaks, and cuts to environmental programs. Their argument is simple: more oil production means cheaper gas. But this idea doesn’t hold up under scrutiny. California produces very little oil compared to global supply. Even if the state drilled more, California drivers wouldn’t see lower prices because oil prices are set worldwide. Look at Texas—another oil-heavy state—where gas prices jumped $1. 20 a gallon, nearly matching California’s increase. More drilling in California wouldn’t change that. The industry also wants taxpayer-funded bailouts for refineries like the one in Benicia. Valero, the refinery’s owner, is asking for $400 million to stay open. But this kind of subsidy rewards big oil companies with no guarantee it’ll lower prices. A smarter move? Turn the Benicia refinery into an import terminal where fuel can be brought in from elsewhere. This would keep gas stations stocked, even if a refinery shuts down.Switching to an import terminal could also help the environment. Refineries pollute the air, while importing fuel doesn’t add to local emissions. Plus, California could use this as a chance to support workers and the town of Benicia by compensating lost wages and tax revenue. These steps would benefit families more than handing money to oil companies. Finally, some regulations might need a second look—like the Low Carbon Fuel Standard, which increases gas prices by 17 cents a gallon without clear climate benefits. Other outdated rules, like special fuel blends, could also be updated. The Iran conflict exposed flaws in energy policies, but California has a choice: follow the oil industry’s playbook or lead with smarter solutions.