California, August 31, 2025
News Summary
The California Energy Commission has postponed the imposition of a profit penalty on oil companies until 2030, amid rising gas prices that have reached an average of $4.59 per gallon. This decision has sparked criticism from consumer advocates who argue it favors the fossil fuel industry. As two major refineries prepare to close, concerns grow about gas supply and escalating prices in the state. Lawmakers are also exploring potential adjustments to fuel standards and oil drilling expansions to stabilize costs as holiday travel increases fuel demands.
California has delayed the implementation of a profit penalty on oil companies until 2030, a decision that comes as gas prices in the state continue to rise. California maintains the highest gas prices in the nation, averaging $4.59 per gallon compared to the national average of $3.20. This postponement has raised concerns and criticism among consumer advocates and environmentalists, as it is perceived as a move that primarily benefits the fossil fuel industry.
The California Energy Commission’s decision follows alarming news that two oil refineries, responsible for approximately 18% of the state’s refining capacity, plan to close in the coming months. The closure of these refineries may exacerbate the situation regarding gas supply and prices in California. Regular unleaded gas prices in the state have increased by nearly 8 cents from the previous week and 12 cents from last month, with some regions experiencing hikes of more than 10 cents just ahead of the Labor Day weekend due to refinery maintenance.
California Governor Gavin Newsom had previously asserted that the state had “finally beat big oil” two years ago, but the recent developments suggest a different narrative for the state’s ongoing struggle with oil companies. The commission, which retains the authority to implement profit penalties, has yet to define what constitutes excessive profits by these companies, perpetuating uncertainty in the market.
Consumer advocacy groups, such as Consumer Watchdog, have voiced discontent with the commission’s decision, labeling it a “giveaway” to oil companies that could lead to further price spikes. The Western States Petroleum Association has voiced support for the extended delay, advocating a 20-year postponement of the profit cap. They argue that the persistent high gas prices are more a result of regulatory costs and supply chain limitations rather than the profits garnered by refiners.
Despite these recent price increases, California’s average gas price remains approximately 4 cents lower than it was at the same time last year. Prices in the Los Angeles-Long Beach area are slightly higher, averaging $4.61 and marking a 14-cent rise from the previous month. Analysts continue to monitor gas prices, with some predicting a potential decrease as the fall and winter months approach, although fluctuations are expected due to ongoing issues in refinery operations.
As discussions about the future of oil production and pricing heat up, various proposals are on the table from lawmakers. These range from adjustments to California’s unique fuel blend to potential expansions in oil drilling, which some experts believe could help stabilize prices but may not comprehensively address the underlying issues causing inflated gas prices.
With increased travel anticipated for the Labor Day weekend, Californian consumers may feel the pinch of rising fuel expenses. In contrast, nationwide averages for gas prices are projected at around $3.15—marking the lowest figure seen for Labor Day since 2020. This stark contrast highlights the unique challenges faced by California in regulating its gasoline market amid regulatory and environmental considerations.
FAQ Section
What decision did the California Energy Commission make regarding oil company profits?
The commission delayed the imposition of a profit penalty on oil companies until 2030.
How do gas prices in California compare to the national average?
As of now, California’s average gas price is $4.59 per gallon, significantly higher than the national average of $3.20.
What are the reasons behind California’s high gas prices?
California’s high gas prices are primarily attributed to taxes, environmental regulations, and recent refinery maintenance issues.
Are there any refinery closures affecting gas supply in California?
Yes, two oil refineries that together account for about 18% of the state’s refining capacity plan to close in the coming months.
What are lawmakers considering to address gas prices in California?
Lawmakers are considering adjustments to the state’s fuel blend and potential expansions in oil drilling as part of efforts to stabilize prices.
Key Features Summary
| Feature | Details |
|---|---|
| Average Gas Price in California | $4.59 per gallon |
| National Average Gas Price | $3.20 per gallon |
| Refinery Closures | Two refineries accounting for 18% of California’s capacity |
| Commission’s Decision | Profit penalty postponed until 2030 |
| Price Increase | Average increase of 12 cents from last month |
| Proposals to Stabilize Prices | Adjustments to fuel blend and potential oil drilling expansions |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: SoCal Gas Prices Surge Ahead of Labor Day Weekend
- Politico: Your Guide to Newsom’s Gas Price Gambits
- AOL News: California Gas Prices Jump
- The Center Square: California Gas Prices Update
- AAA Gas Prices: Gas Prices Go Down
- Wikipedia: Gasoline
- Google Search: California gas prices
- Encyclopedia Britannica: Gasoline
- Google News: California gas prices
- Google Scholar: California gas prices
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
