January 24th, 2026

The California economy seems built on one simple concept. The state wants to extract as much money as possible from drivers and taxpayers. I wrote about this back in October 2025 on this site. I told you then that California gas prices are not an accident. They are a policy choice.

You can read that previous breakdown here: California Gas Prices Are Not An Accident.

The Cost of Compliance

California holds the record for the highest gas tax in the nation. We use a special fuel mixture called the California Blend. This unique formula is incredibly expensive to refine. It turns our state into an energy island. We cannot import standard fuel from neighboring states when prices spike.

The situation gets worse because we are losing the ability to make our own fuel. Phillips 66 closed a major refinery near Los Angeles late last year. Valero plans to shut down in Benicia this April. Supply is dropping. Prices are rising. That is the goal. But not JUST in California, California leaders want EVERYONE to suffer.

The Sable Offshore Lawsuit

California Attorney General Rob Bonta opened a new front in this war on consumers Friday January 23. He stood on a beach in Los Angeles and announced California will sue the Trump administration.

The fight centers on the Sable Offshore pipelines. These pipes run between two California counties. The Trump administration reclassified them as interstate pipelines to bypass state regulators. This move allowed the federal government to issue an emergency permit to restart operations.

Bonta was furious. He said “Sable said jump and Trump said how high”. He claims this acts as a pretext for usurping state oversight. His office will file a petition in the U.S. Court of Appeals for the Ninth Circuit to stop the oil from flowing.

Newsom Leads the Resistance

Governor Gavin Newsom joined the fight as well, Davos jet lag aside. His press office released a statement late last night on X. Newsom claims he leads a united West Coast effort to block the Trump offshore drilling plan.

He says Trump puts billions of dollars of coastal economy at risk to enrich oil executives. He promised to use every legal tool to stop the administration.

The Bottom Line

President Trump made a campaign promise to Drill Baby Drill. He wants to lower energy costs for Americans. California leadership wants to stop him.

They say they care about safety. They say they care about the environment. But the math is simple. When you block pipelines and close refineries you restrict supply. When you restrict supply prices go up.

California wants your gas prices high. They want the average person to suffer. They want the polticial optics.

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Sack Head Shaun

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