Chevron’s dire warning to California as gas prices surge toward $6 a gallon

Oil giant Chevron has issued an ominous warning to Californians, urging Gov. Gavin Newsom to declare a state of emergency amid high gas prices, declining oil production and increasing strain on drivers.

“California has had, I think, very poor energy policy,” Chevron executive Andy Walz, told The New York Times. “They’ve put a climate agenda ahead of reliable and affordable energy, and the consequences of that are that energy in California — any form of it — is unaffordable.”

The largest petroleum and gas company in the US moved its headquarters from San Ramon in the Bay Area to Houston in 2024.

While gas prices are climbing nationwide as the war in Iran hits global oil markets, California is seeing prices soar well above the US average.

The average price of a gallon of regular gas in the Golden State reached $5.831 on Wednesday, nearly 30 cents higher than a week ago and about $1.20 more than the average a month prior, according to the American Automobile Association. The national average sat at just $3.983 on Wednesday.

The war in Iran is not the only factor driving prices up.

The seasonal switch to summer-blend gasoline — which is more expensive to produce — typically pushes prices up in California ahead of warmer months.

“Gas prices are climbing as refineries undergo maintenance ahead of the switch to summer-blend fuel,” said Marie Dodds, public affairs director for AAA Oregon/Idaho. “The unknown is how geopolitical tensions between the US and Iran will continue to impact crude oil prices. That could mean volatility at the pumps, in addition to the normal seasonal spring increases.”

California is often the first state to transition to this more environmentally friendly fuel, which adds further cost pressures due to refinery maintenance, reduced output, and higher production expenses.

Taxes also play a major role.

Californians pay about 90 cents per gallon in taxes and fees — including 18 cents from the federal gas tax and roughly 72 cents in state-level charges, according to the Energy Information Administration. The state’s excise tax alone is more than double the national average.

Gov. Gavin Newsom has blamed global factors, including what he has called President Trump’s “illegal war” in Iran, for the spike in oil prices.

Critics, including Chevron, argue the governor’s green policies have restricted in-state production despite efforts to increase supply, including allowing offshore drilling projects to move forward.

Chevron is set to purchase oil from an offshore company as refineries continue to shut down under Newsom’s administration.

The California Post contacted Gov. Gavin Newsom’s office for comment.

At its peak in the 1980s, the Golden State produced more than 394 million barrels of oil — over 60% of what it needed. Today, much of that oil is imported, largely from overseas, as production has declined over the past four decades.

Phillips 66 and Valero are winding down operations in California. The Phillips 66 refinery in Bakersfield closed in December 2025, and Valero’s Benicia facility is expected to shut down this month.

Critics say strict environmental regulations — including a 2023 refinery price-cap law — have accelerated closures and increased reliance on imported oil.

“California was going to have a crisis before the crisis,” Paul Sankey, president of Sankey Research, told The Times. “They strangle their supply side.”

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