Audrey Streb
DCNF Energy Reporter
California imported a record amount of gasoline in November after major refinery closures tied to years of Golden State leaders imposing strict regulations, Bloomberg News reported Sunday.
Over 40% of imported gasoline to California hailed from the Bahamas, with Asian nations like Japan and India contributing additional volume, Bloomberg News noted, citing data from Vortexa. California politicians have imposed harsh regulations on the oil and gas industry for years, enacting America’s highest tax on gasoline and implementing a cap-and-trade program for emissions that some policy experts have linked to rising energy costs in the state.
The state has the most expensive gas prices in the nation, at $4.58 a gallon — standing in contrast with the national average of $2.92 a gallon — according to the most recent AAA data. Bloomberg News reported that added shipping expenses are further burdening California’s already costly gas market.
Two major refineries are also closing shop in California, with Phillips 66 winding down its California refinery, while Valero is set to shutter its Benicia facility and record a $1 billion write-down.
“Valero didn’t walk away from California lightly. It paid more than a billion dollars to leave. When a major refinery operator chooses a billion-dollar write-down over continued operation, that’s a clear indictment of California’s regulatory environment,” CEO of the American Energy Institute Jason Isaac told the Daily Caller News Foundation. “Shutting down a refinery that supplies nearly 9 percent of the state’s gasoline while demand still exists is not a transition strategy, it’s a self-inflicted supply shock. The predictable result is higher prices, greater volatility, and increased dependence on foreign fuel. Californians will feel the consequences every time they fill up.” (RELATED: Gas Crisis Looms Over California As Dems Continue To Impose Crippling Regs)
Bloomberg News reported that the Bahamian trade route is now a crucial part of California’s strained supply chain, with two tankers carrying gasoline arriving from the Bahamas in 2026 so far. In 2025, California imported more gasoline from the Bahamas than it had in the nine preceding years combined, according to Bloomberg News.
Gasoline imports fell from their January pinnacle, which came as Phillips 66 began winding down operations, Bloomberg News reported. The publication also noted that a lack of interstate pipelines are contributing to California’s affordability woes.
GasBuddy’s head of petroleum analysis, Patrick De Haan, told Bloomberg News that the refinery closures are set to spike gas costs by another 5 to 15 cents a gallon. De Haan also told Bloomberg News that California requires a specific grade of gasoline blendstock that some Asian nations are equipped to supply to the Golden State.
The impending refinery closures have led some state regulators to moderate their stance, according to Bloomberg News, and Democratic California Gov. Gavin Newsom noted that he is working with the refineries regarding the potential gas crisis.
“While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs,” Newsom said in January. “We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime.”
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The gasoline is transshipped through the Bahamas from US Gulf/East coast refineries because the Jones Act requires US to US shipments be in US-made. -owned, and -crewed ships. That unloading and reloading in different ships is cheaper says a lot.
What says a lot is the state with the fourth largest oil reserves in the US is importing oil.
Communism can cause water scarcity in the midst of the ocean.
IT’S CABOTAGE!
https://youtu.be/k9-qPrOE_VM?si=WdsP0Ra4wSatc9QR
IT’S NOT NECESSARY TO SHOUT!
It’s a Beastie Boys parody. Of course it’s necessary..!
It does say a lot. What it says to me is that the US’ shipbuilding capacity and industry are in dire straights when we are so dependent on foreign shipping that we can’t even ship from US port to US port in US made ships.
Shipbuilding is a vital national security priority and we have been in sad, sad shape for a while now…a condition that the Jones act was intended to encourage to change.
The fact that we can’t ship from one US port to another has nothing to do with US ship building capacity and everything to do with the union control over the US government.
The Jones act is the cause of the problem. There was no problem prior to it.
Bingo!
Jones Act is over 100 years old.
Also requires US based crews and US flagged ship. Much higher costs.
its CBOB blendmix fuel.
Cal’s special CARBOB blendmix is only made in Cal refineries. They got a Waiver to import CBOB, given by CARB. Political pressure.
Our politicians in Sacramento are certifiably insane. Most have never had a job outside of politics, therefore, they have no clue how business works. The problem is that they have convinced themselves that they do understand. Consequently, the state ends up with laws and regulations which run our costs through the roof. Gasoline is the most expensive in the US. Our electricity rates are $0.35/kWh. Only Massachusetts is similar.
Washington state says hold my craft IPA. Bezos voted with his feet, wallet and tax revenue. The new (unconstitutional by state law) income tax, the millionaire cap gains tax (also likely unconstitutional) and the rest of the largest tax increase in state history is starting to have an effect. About half the businesses in WA state are planning to leave or preparing to leave. Amazon exited Seattle when the city levied a tax on them. Now they’ve just moved the taxes to the state level. Microsoft has already moved taxable units to Nevada, with more to go. Given the nature of the businesses, there’s no reason for Amazon, Microsoft, or any other tech company to be, or stay in WA state. Even the longtime local tech blog – Geekwire – is warning that Seattle may be the next Cleveland, or Detroit. And an old Seattle company – Boeing headquarters, who fled WA state decades ago, is fleeing Virginia because of the insane new government there. Maybe the plan is to continue to defraud federal tax dollars from the schmucks in other states.
Why would anybody stay in California (4% world GDP) ?
There’s a big world out there that wants to do business with less hassle (in gdp terms, 96%),
So 96 reasons to leave !!
There are many reasons to stay. There are high paying jobs; people are settled there with family; it has incredible natural beauty and great weather in many areas.
The reasons to leave are becoming more and more, however.
Other states have incredible natural beauty. Indeed I would say all states, except possibly New Jersey, have incredible natural beauty. It’s just different kinds of beauty.
New Jersey – have you been in parts where NYC and Philly do not overwhelm the state? NJ has natural beauty, plastered over by Democrat mud.
It is the Garden State.
Chevron HQ had to move to Houston because company could not get their executives to relocate there due to high income taxes.
Elections have consequences.
Leftwing Media Lies have consequences.
One party states always have the same consequences. There is no one in charge to say “NO”.
The California legislature has consistently been a one party state since 1958.
All that has happened is less opportunity and higher costs across the board.
Remember, people who want to lower your standard of living are not your friends.
MA is similar for the very same reasons.
and they still worship at the alter of man made climate change – perhaps the biggest lie ever
The energy program of Newscum dysfunctional, corrupt California is the poster child of a basket case.
About 450,000 tax-paying, higher income households are getting out of California to go to Texas, Florida, Idaho, etc., to avoid woke, inane Democrats from fleecing them to finance their corrupt socialist/communist government programs so unvetted, inexperienced, uneducated, ignorant, often Muslim walk-ins from all over can be sucking from these programs.
Recent CA Governor’s race polling has two Republicans at the top (Bianco and Hilton). I’m not sure if this is a sign of changing times in CA or if it is more indicative of how crappy the slate of Dems are (Swalwell, Porter, Villaraigosa, Steyer, etc…) and that they are just splitting the polls. Interestingly enough, with CAs jungle primary, if the polls hold true, there would be no Dem party candidate to select in the general election.
“While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs,” Newsom said in January.
First he screws his tax payers with regulations that make production unaffordable, and now claims to be the knight in shining armor come to save the day, no doubt with subsidies to induce Valero to stay, paid for with yet more taxes from the already screwed over tax payers.
I’m a hero for breaking it and I’m a hero for fixing it and every time I’m a hero your taxes go up. How on earth does this man get elected?
motor voter and mail-in voting
Don’t forget simple outright fraud…so many ways to take or steal. He who counts the votes determines who gets the votes, and then the election. Democrats excell at that…oh, do not forget to follow the bribes, er, the money.
And California does not require ID (let alone a photo ID) to vote.
The lie that if you raise taxes on the rich enough, then everything can be free.
What they don’t tell you is that rich is defined as everyone who has a job.
California has 58 counties. The 5 largest counties determine ALL statewide elections. The others can all stay home and never vote and the results are the same.
Let’s not forget he promised to take the lead in getting help – including fast-tracking the permit system in the cities ravaged by fire – and then left on an extended tour to Europe.
No one wants him to hurry home. California has enough problems without his help.
So, Miliband won’t be getting any oil from Newsom.
Milliband: ” Hey Gavin, old island-friend. Which people do you pretend to represent these days?”
Gavin: ” Dunno. I think it’s the English.”
Milliband: ” No.Not that it matters , but I’m pretty sure the WEF installed me there”
There are a couple of clueless clowns!
Birds of a Feather flock together.
“The state has the most expensive gas prices in the nation, at $4.58 a gallon — standing in contrast with the national average of $2.92 a gallon”
And many States, including mine, are paying less than $2 per gallon for gasoline.
So, according to CNBC, each $0.80 reduction in the price of gasoline equates to a one percent increase in national GDP, and this should also apply to the State of California, and this means that California’s GDP is three percent lower than it would have been because of their high gasoline prices.
Good work, Gavin, Democrats.
California Democrats don’t have a clue.
“three percent lower”
Which will be an under estimate due to so many companies leaving the state.
Count your blessings, folks. Here in the Netherlands we pay $ 8.68 per gallon for regular gas and $8.06 for diesel. About two thirds of that is tax and excise.
And 50% marginal income tax rate, 21% VAT, 30% investment income tax….the government really knows how to milk the herd. Not sure anyone who doesn’t work for the government can buy groceries in Nether…
But I speak from Canada where marginal income tax rate is 53%, cap gains on investments is 25%, G&PST is 12%, of which 5% is VAT, But gas is only about $5 per gallon although we have huge oil reserves…
Beware…as the government claims more and more responsibility for collective public activities…these are the kind of tax rates you face…Remember, it takes a lot of management to manage an “economy” of busybodies.
Funny how the economy did so much better before government decided to fix it.
Imperial or US gallon?
US gallon, 3.875 litres. We pay € 1.937 per litre of gasoline. Gas stations on the highway are easily 10% more expensive.
I assume you did a typo. It’s 3.78541253 litres per US Gallon.
The Netherlands? You have more problems ahead, I fear. The natural gas storage there is down to 12.09% of capacity. You should have a few nice days ahead before returning to an average winter, but a cold snap is in the long-range forecast. Also, a high of 18 degrees C is not predicted until April 23, a long winter. You will quite possibly be facing restrictions on ng and electrical consumption on industries by then.
in the meanwhile, you are very dependent on LNG deliveries, and purchasing it when it is most expensive. I don’t know how or if that cost will be passed on to consumers.
You need global warming!
At the moment LNG is not all that expensive. Asian demand is lower than expected so Atlantic Basin supply is ample. €32/MWh at TTF, and 77p/therm at UK NBP. Not as cheap as Henry Hub of course, but surprisingly relaxed in view of the threat to Hormuz and global supply from Qatar.
Imperial or US gallon?
Wait until the deportation teams hit California and the poo hits the fan. One party state with millions of illegal aliens to pad the population and boost representation in the House.
I hope Valero (and every other o&g company) gives Newscum the middle finger – they should get what they want and get it good and hard
Better tie up some long term contracts with Japan. 40% of imported from the Bahamas, with Asian nations like Japan and India contributing additional volume
outlook, Japan’s EV market keeps struggling, losing 7.7% in 2025 and accounting for just 2% of total car sales.
Looks like Japan is going to need more of its own gas.
The problem is that CA has diversified itself right out of the USA.
The ignorance takes my breath away.
Affordability, Affordability is the democrat party mantra, yet the the huge spike in gasoline prices and electricity rates is directly due to democrat policies. Policies hurt Californians but is of great help their best friend Communist China.
I think I see the problem. Newsom is “building the all-of-the-above energy future,” to power ICE vehicles. I anxiously await seeing cars with California tags powered by sails.
Craziness.
So someone in Bahamas is making money off of the Jones Act.
Same up in Victoria BC, where cruise ships stop on their way to Alaska from a US port like Seattle. Alaska got an exemption during the panicdemic but has not been able to get law changed permanently.
(Victoria is worth vising on its own, which Americans can do by ferries, but the BC coast offers nothing that the Alaskan coast does not have, and Alaska has much history to look at onshore.)
A variant is that some cruise ships base in Vancouver BC and passengers fly into the airport there or are bussed from Seattle or its airports. So Vancouver gets servicing business on turnarounds, Same situation as Victoria for visiting but easier – just drive up freeway from Seattle.
Don’t forget to add a surcharge on fuels sold to California as payback for their costly policy impact on other states. Call it the Greenwasher Surcharge.
The lack of pipelines is not an issue. California has required a special blend of gasoline be refined for them. Most refineries either won’t or cannot make it so there is no gasoline from other states that can be imported by California.
It is an issue for nearby states (like Nevada) who get their gasoline primarily from California. We pay extra because they were stupid enough to destroy their primary energy sources, and we are stupid because we aren’t building pipelines to states that haven’t been stupid enough to destroy their energy sources.