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California Faces Six-Week Fuel Cushion as Import Risks Push Prices Higher

A reliance on foreign crude leaves a smaller refinery fleet struggling to shield drivers from global shocks.

Overview

  • California’s energy regulator said the state has roughly six weeks of oil and gas supply, with uncertainty after that if the Strait of Hormuz stays disrupted.
  • An oil industry leader warned that California will have to fight for fuel on the global market, which could keep prices climbing.
  • About 60% of the state’s crude comes from abroad, and nearly a third travels from Iraq and Saudi Arabia through the Hormuz chokepoint.
  • Two refinery closures in the past year erased about 20% of in‑state capacity, increasing dependence on imports and heightening price swings.
  • Officials are weighing short‑term relief and structural changes, including a gas tax holiday and revisiting California’s special gasoline blend, though industry says a blend shift is complex and a tax pause would be brief.