California gas prices may rise to $8 per gallon by next year, according to a new forecast.
A recent report warns that closures of major refineries will reduce California’s refining capacity by about 21%, potentially driving up gas prices by as much as 75% compared to current levels.
Phillips 66 and Valero Closures to Shrink Supply
Michael Mische, a professor at the USC Marshall School of Business, reported that the Phillips 66 refinery in Los Angeles is expected to close soon, and the Valero refinery in Northern California is also planning to shut down operations. He projected that within three years, the state could face a shortage of up to 13.1 million gallons of refined fuel per day.
As of April 23, the average gasoline price in California was $4.81 per gallon. Mische’s report predicts that prices could climb to between $7.34 and $8.43 per gallon by the end of 2026. In response, Republican lawmakers have urged the governor to act quickly to address the situation.
BY BRIAN CHOI [ichoi@koreadaily.com]
