Rising gas prices and refinery concerns raise questions about California fuel costs

THOUSAND PALMS, Calif. (KESQ) AAA reports the national average price for regular gasoline has risen to about $3.25 per gallon, the highest level in roughly eleven months.

Energy markets have been reacting to instability in the Middle East, which analysts say can disrupt oil shipments and drive crude prices higher, costs that can eventually reach drivers at the pump.

California drivers already pay significantly more than the national average. Prices in many parts of the state, including the Coachella Valley, often hover around or above four dollars a gallon.

At the same time, Chevron is raising concerns about proposed changes to California’s cap-and-invest climate program, which regulates greenhouse gas emissions from major industries.

The company says the proposed changes could raise operating costs for California refineries and make imported fuel more competitive than gasoline produced in the state.

California’s refining capacity has declined in recent years as several facilities have shut down or reduced operations. The Valero refinery in Benicia is expected to close in April, removing another source of in-state gasoline production.

For drivers who rely on their vehicles for work, rising fuel prices can have an immediate impact.

Mike Morris, a taxi driver in Palm Springs, said fluctuating prices at the pump directly affect how much it costs to stay on the road.

“Well sure it affects us — fuel is how the whole world runs, especially us,” Morris said. “Sometimes it’s four dollars, four-and-a-quarter a gallon, and if you’re busy you don’t always have time to hunt for the cheap gas. You just have to fill up and keep working.”

Drivers who spend much of their day behind the wheel say even small increases in fuel prices can quickly cut into their earnings.

State regulators are reviewing proposed amendments to the cap-and-invest program. Public comments on the proposal are being accepted through March 9, before regulators consider the changes later this year.