California
California gas prices could reach $8 by end of 2026, report says
SACRAMENTO — Gas prices in California could reach more than $8 per gallon by the end of 2026, marking a potential 75% increase over current rates, according to a new report.
The study, led by Michael A. Mische of USC’s Marshall School of Business, projects that regular gasoline could cost between $7.35 and $8.43 per gallon — up from the statewide average of $4.82 as of April 23, 2025. While the exact price point depends on market variables, Mische says there is a clear trend: “The models all indicate the same thing — the price of gas is going up.”
A major contributor to the projected price spike is the scheduled closure of two key oil refineries: Phillips 66 in Los Angeles and Valero in Benicia.
According to the report, these closures would reduce California’s refining capacity by 21% over the next three years, potentially removing 6.6 million to 13.1 million gallons of gasoline per day from the state’s fuel supply. California currently consumes over 13.1 million gallons of gasoline daily, while producing less than 24% of its crude oil needs.
“We’re not going to see a 20% drop in demand to match that reduction,” Mische said. “That creates a significant supply shortfall.”
California is also losing about 20% of its refinery production, a reduction Mische says is equivalent to over half the total production capacity of the state of Washington.
“We’re not going to see a 20% drop in demand to match that reduction,” he said.
Mische highlighted points from the study in an interview with CBS13 that create a mix of factors driving up prices: Increasing state excise and sales tax, expanding cap-and-trade program costs, a pending change to the Low Carbon Fuel Standard, declining in-state oil production and refinery capacity, the state’s lack of incoming fuel pipelines, and increasing reliance on costly maritime transport.
The logistics challenges extend to global instability.
“Any disruption to maritime transport—geopolitical events, a hurricane in the Gulf, labor disputes—could cause major problems,” Mische said. “We’re putting ourselves in a vulnerable position.”
The LCFS alone, if passed in its current form, could raise prices by nearly 10%, according to estimates Mische cited — though he noted that the California Air Resources Board has since removed specific price projections from its website.
Other hidden costs include transportation, since gasoline may now need to be shipped in from the Gulf Coast or Asia, as well as storage reserves.
“Refiners are required to hold 14 to 16 days’ worth of gasoline on reserve,” said Mische, “and the cost of maintaining that reserve will be passed on to consumers.”
Mische noted that the data used in the study were provided by the State of California through publicly available data, as well as data from the Federal Government, which was also publicly available.
Mische emphasized that the study isn’t a doomsday prediction—it’s a risk assessment.
“We layered in a wide array of variables—from refinery capacity and seasonal blends to global spot prices and consumer demand elasticity,” he said. “It’s not about whether the price hits exactly $8. It’s about understanding the trajectory and being prepared.”
Stockton gas station raises prices
Ernie Giannecchini has owned and operated Ernie’s General Store and Deli in Stockton for forty years. Typically, he’s the cheapest gas in town with his cash price coming in under $4, at times.
He told CBS13 this is his way of turning the tables on big oil companies and saving some pain at the pump for his customers.
Over the holidays, he’s dropped the cash price for a gallon and customers have responded by showing up and showing out, supporting the small business.
A week ago, Giannecchini said the price was $3.99, but on Thursday, he was forced to go up to $4.49. It’s still below the state average per gallon, but it’s not the lowest for his customers, something he says he wishes he could change.
“My prices have to go up because I’m at rock bottom prices, I’m just basically at my cost right now, and I usually try to be the lowest price in the area, in Stockton… I have a lot of loyal customers,” Giannecchini said.
He told CBS13 he hopes that the price can go back closer to what it usually is for customers, the lowest in town. But as of now, he explained, there’s “no end in sight” for the price going up.
Governor’s office responds
In a statement to CBS13, a spokesperson for the Governor, Daniel Villasenor, noted that in March, Gov. Gavin Newsom directed the state to redouble efforts to work with refiners to ensure a safe, affordable, and reliable supply of gasoline. The statement read:
“In the two years since the Governor signed California’s gas price gouging law, the state has avoided severe gasoline price spikes like the historic 2022 spike, saving Californians billions of dollars at the pump. The law established the nation’s first state-level independent petroleum watchdog to hold Big Oil accountable, and the state has more transparency from the industry than ever before. Governor Newsom will keep fighting to protect Californians from price spikes at the pump.”
California Republicans demand action
In a statement, Senate Minority Leader Brian W. Jones (R-San Diego) warned of a looming “energy and economic crisis”, citing the same study by Mische.
In a letter to Governor Gavin Newsom, Jones urged immediate action to halt the shutdowns, calling them a threat not only to fuel prices, but also to thousands of good-paying jobs and California’s energy security. He blames state policies and excessive regulations for pushing refineries out of operation.
“We’re not just losing gas. We’re losing jobs, losing local economies, losing our grip on affordable living in California, and losing a critical layer of our national security,” Jones said.
A California bill would let insurers monitor customers’ driving data in exchange for discounted premiums.
Assemblymember Tina McKinnor, the author of AB 311, said the digital monitoring, known as telematics, rewards good driving and would improve safety. In real time, telematics technology would track data such as speed, location and how a vehicle is being driven.
“We have to slow people down,” McKinnor said. “That is the whole purpose for this bill, is driver safety.”
A voter-approved law from 1988, Prop 103, required insurance rates to be based mainly on driving record, miles driven and experience. It made California the only state in the country to prohibit telematics.
McKinnor believes the law is outdated. She argued that her bill would also help good drivers who pay higher rates because of where they live.
“Where I live definitely brings my insurance up,” McKinnor said. “If we both drive the same way, we’ll get charged the same way, instead of by our ZIP code.”
California’s Department of Insurance and consumer groups oppose the bill, citing privacy concerns.
“We can’t look behind the algorithm and see what weight it’s giving to different criteria, which is a big problem,” said Jamie Court, president of Consumer Watchdog. “Auto insurance, otherwise, is transparent. This is why the Department of Insurance is opposed, because of the lack of transparency in the algorithm.”
The proposed savings in exchange for good driving might not be guaranteed. Telematics data from the Maryland Insurance Administration showed that 31% of drivers who opted into the program saw a drop in rates, 24% saw an increase and 45% saw no change to their premiums.
“This collects an awful lot of data about people, more than they know, and it’s like having Big Brother in your back seat,” Court said.
McKinnor insisted that drivers will not be forced to enroll in the program.
“It’s still opt-in in the other 49 states,” she said. “We’re not going to make this mandatory. It’ll be a per-volunteer situation.”
McKinnor’s bill passed through the legislature’s insurance committee. It’s expected to be presented to the full Senate in August.
Huntington Beach police are vowing to prevent a potential “takeover” event being promoted across social media that they believe could get out of control.
Police said they became aware of the event from a flyer online advertising an “end of summer beach bash” in the city.
“Dear ‘Beach Bash’ organizers…” police said in an Instagram post Thursday. “Thanks for the flyer. We’ve seen it too.”
They continued, “We have no intention of allowing that to happen here.”
No further details were provided about when the event was planned to take place or the exact location.
Police and the city of Huntington Beach said they’re working to prevent the event following similar events in Southern California that resulted in violence, vandalism and other criminal activity.
One chaotic event that was held in Newport Beach on the Fourth of July ended with more than 400 people being arrested, according to police. Some partygoers were seen fist fighting, while others allegedly vandalized property and local businesses, including a Pavilions grocery store.
Newport Beach police said social media posts drew a large influx of people to Newport Pier in a short amount of time, and the event got out of control.
Huntington Beach PD warned that anyone who organizes, promotes or participates in criminal activity associated with a takeover event may be arrested or prosecuted. Charges may include incitement to riot, vandalism, theft, assault, reckless driving, unlawful assembly, conspiracy or other applicable offenses.
They also warned that juveniles would not be exempt from punishment, and parents or guardians may also be liable for damages caused by their child’s actions.
The HBPD Special Investigations Bureau has already identified individuals believed to be involved in organizing and promoting the event, according to police.
If you have information regarding this event, you are urged to contact Huntington PD’s Special Investigations Bureau at 714-536-5991.
California
Popular California Fast-Casual Chain Mendocino Farms Opens 100th Location in Santa Barbara – edhat
Santa Barbara has become home to a milestone location for a popular sandwich and salad chain.
Mendocino Farms has officially opened its doors at La Cumbre Plaza, marking the company’s 100th location.
Located at 3851 State Street, the restaurant is Mendocino Farms’ first location in Santa Barbara.
Announcing its new store in a social media post, Mendocino Farms said the restaurant offers chef-curated sandwiches and fresh salads using seasonal ingredients.
“Whether you’re fueling your next adventure or settling in for a sunny lunch with friends, we can’t wait to be part of your community. Here’s to our next chapter, together!” the business wrote on Instagram.
View this post on Instagram
The restaurant features a custom mural by local artist DJ Javier, as shared by Mendocino Farms in an Instagram post.
The store opened on June 30 and marked its first day with a host of activities to celebrate its launch.
The opening day featured a live DJ, activities such as ‘Rodeo Riviera’, a hat bar, live sandwich-making sessions with the chefs, and a postcard station.
The location is open daily between 10:30 a.m. and 9 p.m., according to its website.
Diners can enjoy a special summer menu along with the regular options of sandwiches and salads that Mendocino Farms is known for.
View this post on Instagram
In addition to its menu options, the restaurant also offers catering services with deliveries available from 10 a.m. onwards.
The space occupied by Mendocino Farms earlier housed Panera Bread, which closed in 2025, per the Restaurant Guy.
About Mendocino Farms
The Los Angeles-based fast-casual chain is known for its selection of freshly made sandwiches, salads, wraps, and soups.
Founded in 2005, Mendocino Farms offers classic as well as limited signature items.
The company opened its first location below the Museum of Contemporary Art in Los Angeles and has since expanded into a regional brand, according to the Restaurant Guy.
In addition to California, Mendocino Farms has locations in Arizona, Colorado, Illinois, Texas, and Washington, the company’s website shows.
The restaurants feature a rotating menu of items, along with a range of kids’ menu items that are served with a beverage and a choice of side.
Additionally, the chain offers a variety of dessert options, packaged chips, and packaged beverages.
The company is known for sourcing all its ingredients from ethical local farms and small producers.
All meat and poultry items served are antibiotic-free and humanely raised, while eggs are sourced from cage-free farms, according to its website. Fruits and vegetables are hand-picked, and bread is locally and freshly sourced.
The menu includes a range of items to accommodate all types of diets, such as flexitarian, vegan, and gluten-free.
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