If you need to fill up your tank in California, state Governor Gavin Newsom hopes you don’t choose to do so at a Chevron. He says the company is driving its gas prices up at gas stations throughout the state, with many charging even higher prices than rival gas stations on opposite corners. The Governor’s office says drivers should avoid Chevron stations if they want to avoid being overcharged. The announcement first came ahead of Memorial Day, where California motorists faced average gas prices topping more than $6 per gallon. Those California prices are far above the national average as it is… but Newsom said Chevron’s prices will leave you paying even more for what’s essentially the same fuel.
Newsom’s office took to X to defend the Governor’s warning, citing some compelling evidence to back up his claims. They said that “unbranded gas comes from the same refineries, storage tanks, and pipelines” and meets the same California fuel standards as name-brand gasoline. That means drivers are paying a premium for branding rather than quality. The analysis they cited in the post from the California Energy Commission is further proof. It found Chevron stations were charging roughly 60 to 80 cents more per gallon than unbranded alternatives.
Chevron tried to put the blame back on the Governor
For context, rising fuel prices are a result of the U.S.’s ongoing war with Iran, which has disrupted traffic through the key shipping route of the Strait of Hormuz. Now, an area that normally sees about one-fifth of the world’s crude oil supply is having significantly less move through. Thus, higher prices for what does get by. According to AAA, the state’s average gasoline price reached $6.14 per gallon before the Memorial Day weekend. Gas prices in California continue to be the highest in the country.
Chevron tried to use California’s high gas taxes as an excuse for its prices. The company has even gone as far as to display signs at stations across the state blaming Newsom for higher fuel costs. Chevron also blamed independently owned Chevron franchises that set their own retail prices.
But Newsom’s office poked holes in both arguments, saying that franchise operators are locked into expensive agreements with Chevron and that the company is charging more than any other gas station company just because they can. So yes, California taxes do drive gas prices higher, but charging as much as $8 or more is being done just for pure profit. For now, calling it out and sending citizens a warning is all the Governor’s office can do. State legislation to penalize oil companies for excessive profits doesn’t go into place until 2030.
Stephan is the sports journalist for the Maple Grove Report.
