VICTOR JOECKS: $7 per gallon gas looms on Nevada’s horizon

California’s green schemes are poised to dramatically raise gasoline prices in Nevada.

In a new report, USC professor Michael Mische warned that California’s gas prices could soar to $8.435 per gallon by the end of next year. That would be a 75 percent increase from California’s current average price of $4.80 per gallon. Californians pay the highest prices in the nation, around $1 more per gallon than Nevadans.

Refinery closures are driving these potential price hikes. Last October, Phillips 66 said it would be shutting down its Los Angeles refinery by the end of this year. Last month, Valero Energy said it would shutter a refinery it runs near San Francisco.

If both refineries close, there could be a 21 percent reduction in total refinery capacity by April 2026. That’s fewer than 12 months away.

These aren’t the first refineries to shut down. Over the past four decades, the number of California refineries has dropped from more than 40 to fewer than 15. That has already resulted in a 36 percent reduction in capacity.

These closures are the intended result of rules imposed by California officials, including Gov. Gavin Newsom. Valero CEO Lane Riggs noted that “California has been pursuing policies to move away from fossil fuels for the past 20 years.” The result is a regulatory environment that’s squeezing oil refineries out of business.

This may sound like a problem just for Californians. But this is a looming crisis for Nevada drivers.

Around 88 percent of our state’s gasoline comes from California. In Las Vegas, 90 percent comes from the Calnev Pipeline. That includes both gasoline and jet fuel. That’s right. The Las Vegas airport is fueled by oil refined in California.

California’s efforts to undermine the fossil fuel industry have already raised costs here. This is a major reason why Nevada has the fifth-highest gasoline prices in the country. And if California’s prices jump above $8.40 a gallon, you should expect Nevada’s prices to soar above $7 a gallon.

That would be a financial disaster for many families. And if it slowed down airport traffic, you could see an economic downturn, even if the economy nationwide is doing well.

Gov. Joe Lombardo knows this reliance on California is a problem. A year ago, he sent a letter to Newsom urging him to stop pushing policies that would raise gasoline prices. In September, he and Arizona Gov. Katie Hobbs, a Democrat, sent a joint letter telling Newsom to reverse course. Lombardo is now talking to “federal partners, industry leaders, and government agencies” about the California refinery issue, his spokeswoman Elizabeth Ray said.

This is a good start, but more must be done. That starts with repeatedly warning Nevadans about what’s on the horizon and why. Next, Lombardo should urge the Trump administration to take action to keep at least one of those refineries open. Finally, Lombardo and Nevada’s congressional delegation should demand federal funding and fast-tracked environmental approval for new non-California gasoline pipelines into Nevada.

It’s time to end Nevada’s dependence on California’s oil.

Victor Joecks’ column appears in the Opinion section each Sunday, Wednesday and Friday. Contact him at vjoecks@reviewjournal.com or 702-383-4698. Follow @victorjoecks on X.