California's War on Oil Drives Gasoline Prices to New Heights

Experts warn that the state's policies to phase out fossil fuels could push gas prices to $8-$10 per gallon

Mar. 25, 2026 at 12:31am

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According to political commentator Andy Caldwell, California's long-standing efforts to ban oil drilling, charge refineries higher fees, and phase out gas-powered vehicles are the primary drivers behind the state's skyrocketing gasoline prices, not the war with Iran. Caldwell argues that this "war on oil" has led to the shutdown of oil production and refining facilities in the state, creating a supply shortage that is set to push prices as high as $8-$10 per gallon in the coming months.

Why it matters

California's aggressive policies to transition away from fossil fuels have had unintended consequences, causing significant economic hardship for consumers through soaring gas prices. This highlights the challenges of rapidly shifting an economy away from established energy sources before the necessary infrastructure and alternatives are fully in place.

The details

Over the past 20 years, California has implemented a series of measures aimed at curbing the use of fossil fuels, including banning new oil drilling, imposing higher fees on refineries through the state's Cap and Trade program, and seeking to ban the sale of gas-powered vehicles. These actions have led to the shutdown of oil production facilities and refineries in the state, reducing the supply of gasoline and diesel. Additionally, a key pipeline that transported oil across California has also been shut down, further exacerbating the supply issues.

  • Twenty years ago, California began its 'war on oil' through various policy initiatives.
  • In the past year, USC has predicted that California's gas prices will reach $8 per gallon.
  • Several refineries in California have warned Governor Gavin Newsom that they will be shutting down due to insufficient fuel supplies and the rising costs of operation.

The players

Andy Caldwell

A political commentator and the executive director of COLAB in Santa Barbara County, as well as the host of The Andy Caldwell Radio Show.

Katy Grimes

A reporter for the California Globe who has also been reporting on the state's war on oil and its impact on gas prices.

Gavin Newsom

The Governor of California, who has been criticized for not taking more decisive action to address the state's energy supply issues.

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What they’re saying

“I am hoping that none of you are fooled into believing that the recent gasoline price spikes at the pump are due to the war with Iran, because nothing could be further from the truth as it effects California.”

— Andy Caldwell, Political Commentator

“Years ago, these activists admitted they wanted gasoline to become unaffordable to force you to drive an electric vehicle.”

— Andy Caldwell, Political Commentator

What’s next

Experts predict that the ongoing supply issues and policy-driven price increases could push California's gas prices to $8-$10 per gallon in the coming months, further straining consumers. However, it remains to be seen if the state government will take any immediate action to address the crisis.

The takeaway

California's aggressive pursuit of a fossil fuel-free future has come at a significant cost to consumers, with skyrocketing gas prices that are set to become even more unaffordable. This highlights the challenges of rapidly transitioning an economy away from established energy sources before the necessary infrastructure and alternatives are fully in place, resulting in unintended economic consequences for the public.