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Newsom targets Chevron
California Gov. Gavin Newsom urged Memorial Day weekend travelers to avoid Chevron, posting on X that “Californians, if you’re hitting the road this holiday weekend, be sure to AVOID Chevron.”
“be sure to AVOID Chevron”
Newsom’s office said “Unbranded gas comes from the same refineries, storage tanks, and pipelines,” and cited a state energy commission analysis finding Chevron averaged “between 60 and 80 centavos per cinta” above unbranded alternatives.
The dispute follows Chevron signs at some California stations blaming Sacramento policies for high gas prices, while Newsom’s office argued “Big Oil is already making billions off Trump’s Iran War; don’t let them rip you off even more by overpaying for the brand name.”
The Associated Press-reported context tied the spike to the Iran war, saying the Strait of Hormuz was effectively shut and tankers were stranded unable to deliver crude.
Newsom’s campaign also pointed to California’s tax burden, with the state taxes consumers about “70 cents per gallon of gas,” described as the highest gas tax in the country.
Chevron fires back
Chevron’s counter-campaign blamed state policy for the price gap, with signs reading “California politicians are choosing foreign oil and fuels over local jobs and lower costs,” and including a QR code directing drivers to a Chevron webpage.
Chevron spokesperson Ross Allen said the company’s signs were part of a campaign launched three years ago to educate customers, telling reporters, “We’ve been very vocal about the importance of customer education in California so that our drivers and our consumers understand where their tax dollars are going.”
The California Energy Commission analysis described Chevron’s retail margin and price spread, with the commission’s analysis of 2024 gas prices finding Chevron had a retail margin of 84 cents and that the price difference between Chevron and unbranded gas was 48 cents that year.
The US Oil & Gas Association then clapped back at Newsom’s attack, posting on X, “Pro tip: Don’t take Pro tips from a Politician who hasn’t driven himself anywhere since 2004,” after Newsom’s “pro tip” warning.
In response, Newsom’s office shot back at the remarks, saying, “You want us to comment on a tweet from an account that apparently has been stalking Gavin Newsom since 2004?”
Policy stakes and timing
The fight is playing out as California’s regulators weigh how to respond to oil-company profits and supply constraints, with Newsom having signed a 2023 law allowing the state energy commission to penalize oil companies for excess profits.
“posponer los planes de penalizar a las empresas hasta 2030”
Regulators voted last year to hold off on plans to penalize businesses until 2030 and prioritize other efforts to protect consumers at the pump, after two refineries representing approximately 18% of the state’s refining capacity announced plans to close.
Newsom also signed a 2024 law giving the commission authority to require refineries to keep a certain amount of fuel on hand to prevent sudden price increases when refineries go offline for maintenance, but the regulation “has also stalled.”
Local reporting tied the immediate pressure to Memorial Day travel, noting the state’s average gas price was $6.14 per gallon on Thursday and about $1.58 higher than the national average, according to the American Automobile Association.
California Energy Commission Vice Chair Siva Gunda said supply is stable through mid-June, while she warned that securing oil and gas will become more expensive after that point.
