California Gas Prices Remain High Despite Strait of Hormuz Reopening

Experts say the impacts on supply chains will delay price relief at the pump.

Apr. 18, 2026 at 12:37am

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A minimalist illustration featuring overlapping geometric shapes in shades of blue, red, and yellow, conceptually representing the interconnected global oil markets and supply chains that impact California's gas prices.The complex global supply chains that deliver California's transportation fuels remain disrupted, keeping prices high despite the Strait of Hormuz reopening.Today in Sacramento

Despite the recent reopening of the Strait of Hormuz, a key shipping route for crude oil, California drivers are still facing high gas prices. Experts say it will take several months for prices to return to their baseline levels as supply chains recover from the disruptions caused by the conflict involving Iran that led to the strait's closure over the past couple of months.

Why it matters

California relies heavily on foreign crude oil, and the closure of the Strait of Hormuz significantly impacted the state's supply, cutting availability by around 20%. This left refiners like Chevron scrambling to find alternative sources, driving up costs that are now being passed on to consumers at the pump.

The details

Chevron, which operates two refineries in California, said the disruption through the Strait of Hormuz forced the company to turn to other suppliers from places like Brazil, Colombia, Ecuador, and Mexico. Oil producer Chad Hathaway also pointed to state policies as another factor impacting production, saying 'You can't just pass a law that automatically assumes that everybody's going to just jump right in again and start drilling.' Experts warn that California's heavy reliance on foreign oil leaves the state vulnerable to supply chain disruptions.

  • The Strait of Hormuz temporarily reopened in recent months after being closed due to conflict involving Iran.
  • The disruption through the Strait of Hormuz cut crude oil availability in California by about 20% over the past couple of months.

The players

Chevron

An American oil and gas company that operates two refineries in California.

Ross Allen

A spokesperson for Chevron.

Chad Hathaway

The owner of Hathaway LLC, an oil producer in Bakersfield, California.

Sahar Razavi

An expert from Sacramento State University.

California Energy Commission

The state agency responsible for tracking fuel market conditions and supporting supply stability.

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What they’re saying

“We've got six weeks of supply that didn't get produced and that is going to be supply that is short right now and for the next couple of months as refiners try to get their capacity back online from Asia and other import destinations or import suppliers.”

— Ross Allen, Chevron spokesperson

“You can't just pass a law that automatically assumes that everybody's going to just jump right in again and start drilling.”

— Chad Hathaway, Oil producer

“The supply chain to California gets cut off. Think about that. Think about crude. Think about the refined fuels and stuff that we're importing from India and places like that that could very easily go somewhere else. We are heavily dependent, 100%, 75% dependent on foreign nations to supply our transportation fuels. It's insane.”

— Chad Hathaway, Oil producer

“It will take several months for our gas prices at the pump to return back to their baseline, and that's under best case.”

— Sahar Razavi, Expert, Sacramento State

What’s next

The California Energy Commission is closely monitoring the situation and working with in-state refiners to ensure adequate fuel supply during this volatile period.

The takeaway

California's heavy reliance on foreign oil imports leaves the state vulnerable to supply chain disruptions, and the recent closure of the Strait of Hormuz has highlighted the need for the state to diversify its energy sources and reduce its dependence on overseas crude oil to insulate consumers from price volatility.