Tom Steyer has something to say about gas prices. Unfortunately, none of it makes any sense.

With a new spin on widely-rejected price gouging claims, the gubernatorial candidate argues California drivers are “held hostage” by refiners and the key to lowering gas prices is increasing fuel imports from out of state.

The record says otherwise.

1) THERE IS NO SUPPORT FOR THE CLAIM THAT CALIFORNIA FUEL PRODUCERS ARE PRICE GOUGING. 

When Governor Newsom pushed unproven claims of price gouging by oil companies, a chorus of experts pushed back.

As USC Marshall School of Business professor Michael Mische states in a March 2025 analysis:

“There is no economic evidence of widespread price gouging, price manipulation, undefined price residuals, surcharges, or profiteering by California refiners … Investigations dating back to 2000 by the California State Attorney General have failed to prove price gouging.”

Courts have also rejected claims that California oil companies are gouging consumers.

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2) GASOLINE IMPORTS ARE NOT CHEAPER.

Steyer claims shipping fuel across oceans is “very inexpensive”, but experts disagree.

In their 2024 Transportation Fuels Assessment, the California Energy Commission (CEC) repeatedly notes how gasoline imports are costly, warning: “The cost of policies for importing finished fuel tends to be high, as there is a cost associated with shipping the fuel.”

The U.S. Energy Information Administration echoes the CEC in a May 2025 analysis: 

“California also imports gasoline from other countries, such as India and South Korea, to meet its fuel supply needs … but high shipping costs usually limit imports to periods of refinery outages or the summer driving season.”

At a December 2025 CEC committee meeting, Vice Chair Siva Gunda noted that imports “have not reduced the cost [of gasoline] in the wholesale market,” disproving Steyer’s theory.

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3) UNDERCUTTING CALIFORNIA-MADE GASOLINE WOULD IMPOSE ENVIRONMENTAL, ECONOMIC AND BUDGET COSTS.

There is great irony in a so-called climate champion advocating for California gasoline – produced under stringent environmental regulations – to be replaced by fuel from foreign countries where those regulations don’t apply.

As former California Air Resources Board Chair Lianne Randolph told an Assembly committee hearing in May 2025:

“California does have rigorous environmental standards, and we want to ensure that the fuel that we are using is produced with high standards … We want to ensure that the in-state production that we have is not undercut with too many imports that don’t have strong environmental standards.”

Furthermore, in addition to the unnecessary carbon emissions that result from importing gasoline via tanker, other key climate policies like Cap & Trade don’t apply to out-of-state fuel producers. And, obviously, refineries elsewhere don’t employ local workers or pay California taxes.

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Every element of Steyer’s argument fails scrutiny. Producing gasoline in-state is better for consumers, the environment, and the California economy.