Legislature Receives Report on the State of Transportation Fuels in California and Efforts to Maintain Affordable and Reliable Supply
Published Friday, June 5, 2026
The California Energy Commission and other state agencies provided state senators with an update on fuel supply trends and the factors driving California's high gasoline prices. California is experiencing historically high fuel imports in 2026, including crude oil from regional and international sources. While the state currently has sufficient import capacity and an estimated six- to seven-week fuel supply outlook, refinery production has not kept pace with demand. To improve supply reliability, the energy commission is evaluating options to refine crude oil outside of California and import finished gasoline.
The hearing also addressed recent fuel price increases. The commission noted that upward pressure on gasoline prices began before the conflict in the Middle East, largely due to Valero's planned exit from the California market. Discussion also focused on discrepancies between costs reported to state regulators and those reported to investors, as well as regional price disparities across the state. Humboldt County continues to experience some of the highest gasoline prices in California due to limited competition and Chevron's dominant market presence in the region.
Agriculture was highlighted as a potential part of the solution to California's long-term fuel supply challenges. Policymakers discussed opportunities to use agricultural waste streams for biomass-based and other renewable fuels, particularly for transportation and port operations. State agencies acknowledged that technologies capable of converting agricultural waste into fuel at commercial scale remain underdeveloped and will require additional investment and infrastructure support. Participants also recognized that liquid fuels will likely remain essential for agriculture, goods movement and other hard-to-electrify sectors beyond 2045.
Staff contact: Daniella Timofeyev, dtimofeyev@cfbf.com.
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