Part 6/11:
Politicians like Governor Gavin Newsom often claim that external, mysterious "forces" are responsible for rising fuel costs. However, critics argue these narratives distract from the reality: policy choices are the primary drivers of high prices. California is unique for its “clean fuels” requirements, which increase production costs and restrict refining capacity. The state’s heavy taxation and regulatory burden make operating a refinery economically unviable.
Public officials seem to ignore the fact that California imports a significant portion of its refined fuel from abroad—mainly Middle Eastern countries—due to its own restrictions on domestic production. This state-imposed scarcity has created a perfect storm, resulting in the highest fuel costs nationally.