The blame game over rising gas prices is intensifying as Gov. Gavin Newsom suggested Chevron could be ripping off its customers.
California's governor, who is not shy about promoting his positions with provocative posts, warned Memorial Day travelers not to pump gas at Chevron.
“Californians, if you are traveling this holiday weekend, be sure to AVOID Chevron,” he said in the post, which included screenshots showing Chevron gas prices higher than those at nearby unbranded gas stations. “Unbranded gas comes from the same refineries, storage tanks and pipelines.”
The governor's call is part of a broader dispute between some California politicians and Chevron. The gas company posted signs at some of its California gas stations blaming Sacramento's policies for the state's high prices.
“California politicians are choosing foreign oil and fuels over local jobs and lower costs,” the signs said.
It includes a QR code that directs people to a Chevron web page asking them to “stand up for affordable, reliable energy.”
A Chevron spokesperson did not immediately respond to a request for comment.
A Chevron spokesperson told the Associated Press that the signs were part of a campaign launched three years ago to educate the public about how California policies affect gas prices.
A Chevron refinery in El Segundo on May 4.
(Kyle Grillot/Bloomberg via Getty Images)
Chevron, as well as other major energy companies and experts, have emphasized that California's higher taxes, fees and standards on gas, as well as its restrictions on refining, have boosted prices at the pump. Gas prices are among the highest in the country even in the best of times, and recent issues influencing supplies from the Middle East have triggered a unique challenge for the state, industry leaders say.
Gasoline prices have skyrocketed in California and across the country since the United States and Israel attacked Iran in late February. Gasoline prices have not stabilized since then, and California's average is nearly $1.60 higher than the national average. The average gas price in the state is $6.13 as of Friday, according to the American Automobile Association.
Several factors explain California's higher costs, including a premium gas mix that limits pollution, environmental program fees, the relative isolation of the state's fuel market and state and local taxes, according to the California Energy Commission.
Californians have cut back on vacation trips and leisure nights out as pump prices fail to stabilize.
Newsom noted in Post X that big oil companies are making billions of dollars from the Iran war. The price of crude oil has risen since the war began, as the Strait of Hormuz, through which oil normally passes, was effectively closed.
Chevron is the state's largest brand-name retailer and controls 19% of California's gas market with more than 1,600 stations, according to the state's energy commission.
The commission's analysis of gasoline prices in 2024 found that Chevron had a retail margin of 84 cents. The price difference between the oil company and unbranded gas stations was 48 cents that year.
Tensions between the oil giant and the state increased when Chevron moved its headquarters to Texas in 2024. The move ended the company's long history in the state, dating back to its founding 145 years earlier.
The oil company then complained about Sacramento's energy and climate policies. Companies, particularly in the technology sectors, have since fled the state, blaming the state's high operating costs.
California taxes consumers 70 cents per gallon of gasoline, the highest state tax in the country.
Newsom has been a staunch opponent of big oil companies, but the laws he passed have largely stalled. He signed a law in 2023 that would penalize oil companies for excessive profits. Regulators voted to postpone the plans until 2030 after two major oil refineries threatened to shut down operations in the state.
