State energy policies are forcing Californians to rely more and more on costly foreign oil and refined fuel to meet our needs. Relying on imports exposes our state to global supply risks and market volatility and increases global emissions as supplies are delivered by tanker from unstable foreign countries.
Because California is an energy island with no pipelines to import crude oil from the lower 48 states, policies shutting down local oil production force the state to increasingly rely on foreign oil imports to meet its energy needs. [1]
California now imports more than 75% of the oil we use each day by tanker, sending $25 billion each year overseas [2], largely to foreign producers that do not share our environmental, labor, human rights, and safety standards.[3]
California’s energy supply is more vulnerable to geopolitical conflicts because of our state’s heavy reliance on imports from foreign countries, many of which are unstable, for our energy.[4]
California’s policies are the main driver for our state’s badly needed fuel refineries shutting down. Refinery operators are facing mounting regulations and declining profitability, leading many to redirect capital to more profitable operations elsewhere. In fact, California has seen a massive decrease in fuel refining capacity over the past several decades, from 40 refineries down to just 9 as of 2025. By April 2026, California will have only 7 refineries remaining. [5]
California requires a unique, cleaner burning fuel blend called CARBOB gasoline - which has historically been refined in-state. But by midyear 2026, California’s in-state refining capacity is set to decline more than 30% from 2019 levels. This will reduce our in-state fuel supply by nearly 20%. [6]
With a growing imbalance between supply and demand, and fewer refineries in the state, California will now be forced to import foreign refined fuel to make up for the loss. That could mean huge price spikes for consumers.
Despite the ongoing need for it, state and local policies are doing irreparable harm to our current energy system. According to the Federal Energy Information Administration, “all of these supply chain issues mean that California gasoline prices are more volatile and subject to large spikes.” One 2025 study by USC Professor, Michael Mische, suggests prices could increase to as much as $8.43 per gallon.[7]
“All of these supply chain issues mean that California gasoline prices are more volatile and subject to large spikes.”
- Federal Energy Information Administration