California Turns to Bahamas for Gasoline as Refineries Shut Down

State's 'green' policies drive fossil fuel industry out, leading to supply shortages and higher prices

Published on Feb. 20, 2026

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Despite sitting on billions of barrels of oil reserves, California is now importing gasoline from the Bahamas due to the closure of several refineries in the state. This is a result of the state's strict environmental regulations that have driven the fossil fuel industry out, leading to supply shortages and skyrocketing gas prices.

Why it matters

California's reliance on imported gasoline raises concerns about energy security, environmental impact, and the state's ability to meet its own energy needs. The situation highlights the unintended consequences of the state's 'green' policies, which have shifted production and emissions elsewhere rather than truly reducing greenhouse gas emissions.

The details

Several refineries in California have closed in recent years, including Valero's 145,000-barrel-per-day refinery and the Phillips 66 refinery in Los Angeles. This has led to a shortage of gasoline supply, forcing the state to turn to the Bahamas for imports. The Jones Act, which requires the use of American-flagged ships for domestic shipping, makes it cheaper to import fuel via the Bahamas on foreign-flagged vessels.

  • In October 2025, the Phillips 66 refinery in Los Angeles closed.
  • In January 2026, Valero closed its 145,000-barrel-per-day refinery in California.
  • Over the last month, gas prices in California have risen nearly 40 cents per gallon.

The players

Gavin Newsom

The governor of California, whose administration has implemented strict environmental regulations that have driven the fossil fuel industry out of the state.

The Trump administration

The previous federal administration that tried to help California solve its energy problems by encouraging local oil and gas production, including offshore drilling, which raised concerns about environmental protection.

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What’s next

The state will likely continue to face challenges in meeting its energy needs, and may need to re-evaluate its environmental policies to balance its climate goals with ensuring a reliable and affordable energy supply.

The takeaway

California's reliance on imported gasoline highlights the unintended consequences of its 'green' policies, which have shifted production and emissions elsewhere rather than truly reducing greenhouse gas emissions. The state must find a way to balance its environmental goals with ensuring a reliable and affordable energy supply for its residents.