I have chronicled the long history of California’s politicians targeting fossil fuel companies as part of “climate cult” theater.
These antics have had consequences, and now two Democrats running for governor want to suspend the gas tax:
Standing in front of a gas pump in a video posted to social media, San Jose Mayor Matt Mahan said the costs are “becoming an emergency for working families, and I think we ought to act like it.”The moderate Democrat called on state lawmakers to suspend California’s gas tax, which at 61 cents per gallon is the highest in the nation.Former Los Angeles Mayor Antonio Villaraigosa also called for an “immediate moratorium” on regulations that he blamed for “overburdening” California refineries and working families.“These failed policies are not only hurting tens of millions of Californians, they are terrible for the environment because they have forced California to depend on imported foreign oil from the Middle East,” Villaraigosa said in a statement.
To begin with, energy giant Chevron relocated its headquarters to Texas after more than 140 years in California. It had strong roots in this state. However, the toxic policies of California’s lawmakers and regulators have killed those roots.
Phillips 66 announced plans to stop operations at its Los Angeles-area refinery in the fourth quarter of 2025. And while it is not truly closed, operations are clearly winding down.
The Houston-based company said it will cut 122 employees effective April 3 at two facilities in Carson and Wilmington that make up the company’s Los Angeles refinery, according a notice filed Feb. 2 with California’s employment regulator. This follows a separate notice last month that 155 employees will be terminated at the refinery in December, bringing the total to 277.
Valero decided to close its Benicia refinery, which is the main supplier of Travis Air Force Base. This development is a disturbing threat to national security.
When supply is reduced, but demand is not, prices tend to rise. Now Californians are having seismic-scale sticker shock at gas prices that are the highest in the nation.
California and San Francisco remained the most expensive markets, with prices nearing or exceeding the $6 per gallon mark for higher grades, while Texas continued to post the lowest prices despite notable gains. Across all states, regular fuel remained the cheapest option, premium the highest, and midgrade in between, highlighting a uniform pricing structure amid a nationwide surge in gasoline costs.
At my office today, there were complaints that $100 didn’t even fill a car’s tank completely.
And while Governor Gavin Newsom’s press office attempted to deflect blame, astute news consumers pointed out that the state raked in more money from gas taxes than the “evil corporations” did.
“The State of California collects more in taxes per gallon of gasoline than refineries such as Chevron, Shell, or Valero collect in profit per gallon,” the note read. “From CA’s own state energy website, on average, the state of California collects about $0.71 per gallon of gas; meanwhile, the average profit a company like Chevron rakes in is typically under $0.20 per gallon, depending on the quarter. And that figure is before taxes.
Legal Insurrection readers will recall that gubernatorial hopeful Rep. Eric Swalwell (D-CA) was forced to end his campaign amid charges of sexual misconduct. This is one sign that the Democrats are desperate to align behind one appealing candidate to avoid a Republican in.
Mahan and Villaraigosa’s desire to suspend California’s fuel tax or ease regulations in response to gas prices is just another sign of desperation.
California’s political class is now reaping the bitter harvest of its own “green virtue” theater. The same lawmakers who punished homegrown energy producers are scrambling to deflect outrage as gas prices skyrocket and supply chains fray.
Voters who once cheered environmental grandstanding are watching the state’s economic engine sputter and are starting to envy Texas and other states that are now welcoming the businesses Sacramento drove away.
In true California fashion, this free-market lesson arrived late, and the consequences of ignoring many earlier warnings are already written in the price at the pump.
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