EDITORIAL: Govs. Lombardo, Hobbs lean on Newsom to keep gas prices down

On Wednesday, the California Assembly held an informational hearing on the state’s gasoline market. California Gov. Gavin Newsom has called his state’s legislature into a special session to address high fuel costs. He wants them to pass a bill that would impose a host of new requirements on oil refineries. The stated goal is to limit price spikes when refineries shut down for maintenance.

High gas prices are a real problem. Two years ago, gasoline prices soared when several California refineries had to shut down or reduce their output. The average price in California shot well past $6 a gallon. Last year saw a similar, although smaller spike. It was also partly due to refinery issues.

This isn’t just a California problem. Nevada obtains almost 90 percent of its refined gasoline from the Golden State. When California’s prices jump or fall, Nevada’s prices follow, although costs here are usually at least 50 cents lower. Arizona is in a similar predicament.

“Billions and billions of dollars, hard-working folks being fleeced by the greed of these oil companies,” Newsom said earlier this month. “These price spikes go directly in their pocket.”

One has to wonder why these huge companies are significantly less greedy in other parts of the country. As of this writing, the price per gallon in Texas is around $2 lower than it is in California. Odd.

But not if you reject Mr. Newsom’s elementary-level analysis. California, with his full support, is waging active war on fossil fuels. In 2022, California introduced a plan to “cut oil usage by 94 percent” by 2045, according to a release from Mr. Newsom’s office. The state is requiring more and more new cars to be zero emissions, with a full ban on gasoline-powered cars by 2035.

As a result, companies are closing refinery plants instead of building new ones. As supply shrinks, prices go up.

That’s why Mr. Newsom’s new proposal is likely to exacerbate the problem. That led Nevada Gov. Joe Lombardo and Arizona Gov. Katie Hobbs, a Democrat, to write him a joint letter.

“Increased regulatory burdens on refiners and forced supply shortages will result in higher costs for consumers in all of our states,” the governors wrote. “With both of our states reliant on California pipelines for significant amounts of our fuel, these looming cost increases and supply shortages are of tremendous concern to Arizona and Nevada.”

Since it’s unlikely Mr. Newsom will listen to reason or his neighbors, Mr. Lombardo and Ms. Hobbs should explore long-term solutions that build or expand pipelines to other states.