In a move to reinforce California’s energy security and support trade flows, the California Energy Commission (CEC) has recommended increasing fuel imports and temporarily adjusting profit cap policies to encourage private investment and maintain supply chain stability.
With the planned closure of two major refineries—representing about 20% of the state’s refining capacity—the CEC is prioritizing measures that will safeguard market balance and ensure a seamless fuel distribution network. Vice Chair Siva Gunda emphasized that increasing capacity at third-party import terminals will help keep gasoline and jet fuel supply consistent across California.
By creating a more open environment for trade, these actions are expected to attract global fuel suppliers and promote a more diversified and resilient energy supply chain. This aligns with California’s broader transition goals while keeping trade and investment opportunities front and center.
Gasoline prices in California currently average $4.61 per gallon, the highest in the nation. However, the state believes that boosting fuel imports and temporarily pausing the refinery profit margin cap will help cushion consumers from price volatility and keep trade flows steady.
The CEC also called for measures to stabilize local crude oil production, which has seen a steady decline over recent decades. A more stable production outlook could enhance California’s ability to balance imports and domestic output while strengthening its position in the global energy trade.
These recommendations reflect California’s commitment to balancing environmental goals with practical trade strategies, ensuring that the state remains a key player in regional and international energy markets.
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