Part 6/11:
The immediate consequence of refinery closures and regulation-induced supply constraints is rising fuel costs. In California alone, approximately 20% of households spend more than 15% of their income on transportation fuels, making high gasoline prices a significant burden. The cascading effects extend beyond consumers—transportation costs increase, inflation accelerates, and sectors such as agriculture, manufacturing, and tourism suffer.
Furthermore, regional impacts are acute. Closure of refineries concentrates economic hardship in specific communities, often those reliant on refinery jobs and local commerce. When supply diminishes, the stabilization of prices becomes nearly impossible, leading to volatility and prolonged shortages.