California is having to rely on gasoline shipped in from the Bahamas as more refineries close in the state due to its strict environmental policies.
And the restricted in-state refining capacity is causing gas prices to surge.
The current average for regular gasoline is $4.59, up from $4.21 last month, according to theAmerican Automobile Association.
TheNew York Postreported, “Valero’s Benicia refinery — a key Northern California supplier — is in the process of sunsetting operations. The move follows other major pullbacks, including the closure of Phillips 66’s Los Angeles refinery, steadily reducing California’s ability to produce its own gasoline, and driving up costs at the pump.”
“California sucked in more gasoline imports last November than at any point in its history — and a staggering 40%-plus of it came from the Bahamas — all that means more cost at the pump for drivers,” the news outlet added.
Desperate California shipping oil from the Bahamas using bizarre loophole as state grapples with highest US gas priceshttps://t.co/W4EaEs3x9Qpic.twitter.com/NDeTR3AIQO
— New York Post (@nypost)February 16, 2026
Cal Mattersreported in September that in 1982,California, which has rich oil reserves, imported about 6 percent of its needs from foreign sources. As of last fall, the percentage had climbed to 64 percent.
Further, “In 2000, the California gas price was approximately $0.25 higher than the national average, but by 2025 the difference increased to $1.50,” Bulat Gafarov, an assistant professor of agricultural and resource economics at UC Davis, wrote in aJuly 2025 study.
Bloombergexplained why the Bahamas has become such a large source of California’sgasoline,though the oil itself originally comes from the U.S. Gulf Coast.
Source: VidNews » Feed