California Importing Foreign Fuel After Running Refineries Out Of Town

California imported a record amount of gasoline in November after major refinery closures tied to years of Golden State leaders imposing strict regulations, Bloomberg News reported Sunday.

Over 40% of imported gasoline to California hailed from the Bahamas, with Asian nations like Japan and India contributing additional volume, Bloomberg News noted, citing data from Vortexa. California politicians have imposed harsh regulations on the oil and gas industry for years, enacting America’s highest tax on gasoline and implementing a cap-and-trade program for emissions that some policy experts have linked to rising energy costs in the state.

The state has the most expensive gas prices in the nation, at $4.58 a gallon — standing in contrast with the national average of $2.92 a gallon — according to the most recent AAA data. Bloomberg News reported that added shipping expenses are further burdening California’s already costly gas market.

Two major refineries are also closing shop in California, with Phillips 66 winding down its California refinery, while Valero is set to shutter its Benicia facility and record a $1 billion write-down.

“Valero didn’t walk away from California lightly. It paid more than a billion dollars to leave. When a major refinery operator chooses a billion-dollar write-down over continued operation, that’s a clear indictment of California’s regulatory environment,” CEO of the American Energy Institute Jason Isaac told the Daily Caller News Foundation. “Shutting down a refinery that supplies nearly 9 percent of the state’s gasoline while demand still exists is not a transition strategy, it’s a self-inflicted supply shock. The predictable result is higher prices, greater volatility, and increased dependence on foreign fuel. Californians will feel the consequences every time they fill up.”

Bloomberg News reported that the Bahamian trade route is now a crucial part of California’s strained supply chain, with two tankers carrying gasoline arriving from the Bahamas in 2026 so far. In 2025, California imported more gasoline from the Bahamas than it had in the nine preceding years combined, according to Bloomberg News.

Gasoline imports fell from their January pinnacle, which came as Phillips 66 began winding down operations, Bloomberg News reported. The publication also noted that a lack of interstate pipelines are contributing to California’s affordability woes.

GasBuddy’s head of petroleum analysis, Patrick De Haan, told Bloomberg News that the refinery closures are set to spike gas costs by another 5 to 15 cents a gallon. De Haan also told Bloomberg News that California requires a specific grade of gasoline blendstock that some Asian nations are equipped to supply to the Golden State.

The impending refinery closures have led some state regulators to moderate their stance, according to Bloomberg News, and Democratic California Gov. Gavin Newsom noted that he is working with the refineries regarding the potential gas crisis.

“While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs,” Newsom said in January. “We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime.”