Chevron said it is threatening to close its oil refineries in California due to overregulation, which the oil company said is contributing to price spikes amid the war in Iran.
Due to California’s taxes, emissions rules and other regulations, which hit gas costs harder than in many other states, the price per gallon is well over the national average.
Tehran’s decision to effectively shut off the Strait of Hormuz has left millions of barrels of crude oil stationary, hurting economies in Asian countries, which heavily rely on oil from the Middle East.
In turn, Chevron, which imports fuel from China, South Korea and Singapore, is facing the brunt of the blockade. Amid the energy crisis, Beijing has banned fuel exports.
Andy Walz, who heads Chevron’s oil refining efforts, said leaders in California should be worried about the possibility of a fuel deficit in the Golden State.
More on this story at The Hill.
